Third Community Bank Acquisition Announced So Far in 1998
LEAWOOD, Kan., May 19 /PRNewswire/ -- Gold Banc (Nasdaq: GLDB) announced
today a definitive merger agreement to acquire Northwest Bancshares, Inc. and
its wholly owned subsidiary, Peoples State Bank of Colby, Kan., in a tax-free
stock swap valued at approximately $2.95 million. Peoples State Bank had
total assets of $21.4 million, deposits of $19.3 million and net loans of
$16.4 million at March 31, 1998.
The exchange ratio of the merger is fixed at 28 shares of Gold Banc common
stock (following the Company's stock split effective May 19, 1998) for each
share of Northwest Bancshares common stock, which is not publicly traded.
Northwest shareholders will receive a total of 210,000 Gold Banc shares on a
post-split basis. Gold Banc has 10.7 million shares of common stock
outstanding (post-split).
Michael W. Gullion, Gold Banc President and Chief Executive Officer,
remarked: "Peoples State Bank has an outstanding reputation for friendly,
personalized service in Colby, a major trade center and county seat for Thomas
County, and will complement our Northwest Kansas presence which began with our
Oberlin acquisition last year. This is our third community bank acquisition
announced to-date in 1998 and we believe that other community banks of similar
high caliber as Peoples are interested in the benefits of membership in the
Gold Banc family. One of the most important aspects of community banking is
maintaining relationships with customers, something every one of our member
banks does extraordinarily well. Today, community banking customers are also
seeking a greater selection of financial services than many smaller banks may
be able to provide cost-effectively. In addition to our significant financial
strength, this is one of the key advantages which Gold Banc provides for
Peoples."
Set to close in the third quarter of 1998, the Peoples State Bank
transaction will be accounted for as a pooling and is expected to be accretive
to Gold Banc's earnings in 1998. The transaction must be approved by
shareholders of Northwest Bancshares and the appropriate federal regulatory
agencies.
Jon W. Pope, President of Peoples State Bank, said: "In choosing to join
Gold Banc, our board of directors considered the needs of our customers and
the best long-term interests of our shareholders and employees. We were all
impressed with Gold Banc's commitment to community banking and became
convinced that membership in their growing family would provide us with many
distinct and compelling advantages, as well as enable us to continue our
tradition of personalized customer service. The fact that Gold Banc offers
not just banking services, but a whole range of financial services including
insurance, trust and alternative investment products, was an important factor
in our decision. Since we are highly focused on customer service, we of
course want to provide the expanded range of products and services today's
community banking customers have come to expect. Gold Banc allows us to do
just that without losing those friendly small bank touches that are still
important to many people."
According to FDIC data available as of June 30, 1997, Peoples State Bank
held a number four market share of total deposits in Thomas County, its
primary market. The bank was founded in 1984 and is located in the county
seat town of Colby, Kan. Through its small business lending activities,
attentiveness to individual account needs and other banking services, Peoples
State Bank plays a growing role in the area's commerce and civic spirit.
When completed, the merger is projected to boost Gold Banc's assets to
approximately $676.1 million, deposits to $557.6 million and net loans to
$434.2 million based on March 31, 1998 pro forma data, which also includes the
pending acquisitions of Farmers State Bank and Tri-County National Bank as
announced on April 29, 1998.
About Gold Banc
Gold Banc, a multi-bank holding company, currently owns and operates the
following community banks: Exchange National Bank, with locations in Leawood,
Shawnee and Marysville, Kan.; Citizens State Bank and Trust Company, located
in Seneca, Kan.; Peoples National Bank, Clay Center, Kan.; Farmers National
Bank, Oberlin, Kan.; the First National Bank in Alma, located in Alma, Kan.;
and Provident Bank, f.s.b., located in St. Joseph, Mo. Each of these
community banks provides a full range of commercial and consumer banking
services in their respective markets, with each bank retaining its board of
directors, local identity and decision-making authority. In addition, pending
but not yet closed are the acquisitions of Farmers State Bank of Sabetha,
Kan., and Tri-County National Bank of Washington, Kan. Gold Banc also owns
Midwest Capital Management, Inc., a full service broker/dealer and investment
management firm based in Kansas City, Mo.
Safe Harbor Statement
This news release contains comments or information that constitute
forward-looking statements (within the meaning of the Private Securities
Litigation Reform Act of 1995), which involve significant risks and
uncertainties. Actual results may differ materially from the results
discussed in the forward-looking statements. Factors that might cause such a
difference include, but are not limited to: (1) expected cost savings from a
merger cannot be fully realized or realized within the expected time frame;
(2) revenues following the merger are lower than expected; (3) competitive
pressures among depository institutions increase significantly; (4) costs or
difficulties related to the integration of the business of the organizations
are greater than expected; (5) changes in the interest rate environment reduce
interest margins; (6) general economic conditions, either nationally or in
states in which the combined company will be doing business, are less
favorable than expected; and (7) legislation or regulatory changes adversely
affect the businesses in which the combined company would be engaged.
SOURCE Gold Banc Corporation, Inc.
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Related links:
http://www.goldbanc.com
CONTACT:
Keith E. Bouchey, Exec. V.P. & CFO,
keithb@goldbanc.com, or Brian J. Ruisinger, Investor Relations,
brianr@goldbanc.com, both of Gold Banc, 913-451-8050; or Mike
Arneth, General Information, 312-640-6734, or mga@chi.frbd.com,
Paul Scheeler, Analysts-Investors, 312-640-6742, or
pas@chi.frbd.com, or Bess Gallanis, Media Inquiries,
312-640-6737, or bag@chi.frbd.com, all of The Financial Relations
Board
NOTE TO EDITORS: For more information on Gold Banc toll-free via
fax, simply dial 1-800-PRO-INFO, follow the voice menu prompts
and enter the company code "GLDB" on any touch tone phone. Visit
the Gold Banc web site at: http://www.goldbanc.com
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