Transaction Highlights
-- Significant source of fee-based income primarily from the origination
and servicing of mortgage loans.
-- Diversifies Gold Banc into mortgage banking services and expands its
presence into additional states.
-- Effectively leverages capital, maintains solid asset quality and helps
support continued earnings growth.
-- Continues Gold Banc's strategy of maintaining strong local management
and community relationships.
LEAWOOD, Kan., July 2 /PRNewswire/ -- Gold Banc (Nasdaq: GLDB), one of the
country's fastest growing community banking and financial services
organizations, announced today the Company has signed a definitive agreement
to acquire Regional Holding Company, Inc. of Kansas City, Mo., owner of
Regional Investment Co., a full service mortgage banking firm which originates
and services residential mortgage loans.
The total purchase price of the acquisition is $13.2 million in cash.
The transaction will be accounted for as a purchase and should be accretive to
Gold Banc's earnings in 1999. Completion of the transaction is subject to the
approval of the appropriate regulatory authorities. The deal is expected to
close in the third quarter of 1999.
Michael W. Gullion, Gold Banc Chairman and Chief Executive Officer,
commented: "We are excited about Regional joining the Gold Banc family. This
is a key strategic addition to our vision of becoming the one-stop, high
performance financial services provider of choice to customers in our markets.
Regional's full service mortgage banking capability complements Gold Banc's
core community banking franchise and provides a host of new operating
synergies among our investment management, trust services and insurance
businesses. In addition to accepting mortgage applications through our full
service banking web site goldbankonline.com, our community banks will be able
to pursue additional mortgage cross-selling opportunities with individual
accountholders and small business owners while attracting even more customers
who are seeking a complete range of banking and financial services."
Bradley D. Ives, President of Regional Holding Company, remarked: "Our
management team and staff are pleased to join Gold Banc. Last year we
originated nearly $600 million in mortgage loans and currently maintain a
servicing portfolio of over $500 million. Regional and Gold Banc have similar
cultures focused on providing personalized service, which should enhance the
competitive advantages we expect to leverage among our respective lines of
business as our combined organization continues to grow and prosper. We see
tremendous cross-selling opportunities and are especially excited about
leveraging Gold Banc's full service web site as well as the additional
regional markets which their established community banking presence opens up
to us."
Gullion concluded: "With respect to our focus on delivering enhanced
shareholder value, Regional represents another significant new source of
non-interest or fee-based income for Gold Banc. This acquisition will
immediately contribute to earnings growth, helps maintain the Company's solid
asset quality, and strengthens our local management teams and their ties to
the communities we operate in, which are hallmarks of the Gold Banc
franchise."
Regional maintains mortgage loan origination offices in the following
cities: Gainesville, Georgia; Effingham, Illinois; Evansville, Indiana;
Indianapolis, Indiana; Kansas City, Missouri; St. Louis, Missouri; Charlotte,
North Carolina (2 offices); Greensboro, North Carolina; Raleigh, North
Carolina; Columbus, Ohio; Anderson, South Carolina; Greenville, South
Carolina; Memphis, Tennessee; Nashville, Tennessee; Roanoke, Virginia; and
Virginia Beach, Virginia. In addition, Regional operates five wholesale
offices which purchase loans from mortgage brokers, banks and savings and
loans. All support functions such as underwriting, processing, and closing
are centralized in the firm's home office in Kansas City.
Gold Banc is one of the country's fastest growing community bank and
financial services holding companies with $1.15 billion in total assets as of
March 31, 1999.
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
acquisitions 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.
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, or visit the Gold Banc page on FRB's web site
at: http://www.frbinc.com.
Visit Gold Banc at: http://www.goldbanc.com .
SOURCE Gold Banc
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Related links:
http://www.goldbanc.com
CONTACT:
Keith E. Bouchey, Exec. V.P.-M&A, email,
keithb@goldbanc.com, or investor relations, Brian J. Ruisinger,
email, brianr@goldbanc.com, both of Gold Banc, 913-451-8050; or
general information, Mike Arneth, 312-640-6734, email,
mga@chi.frbd.com, analysts-investors, Paul Scheeler,
312-640-6742, email, pas@chi.frbd.com, or media inquiries, Joyce
Hanson, 312-640-6756, email, jph@chi.frbd.com, all of the
Financial Relations Board
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