2nd non-bank acquisition in 1998 represents significant additional source of
fee-based income and further expands Gold Banc's presence in the Midwest
financial services market
LEAWOOD, Kansas, Aug. 31 /PRNewswire/ -- Gold Banc (Nasdaq: GLDB) today
announced a definitive merger agreement with The Trust Company, a Midwest
trust services business headquartered in St. Joseph, Mo., in a tax-free
exchange of stock valued at approximately $4.3 million.
The Trust Company provides trust services and maintains personal employee
benefit and charitable trust accounts for over 1,300 customers throughout the
Midwest. At June 30, 1998, The Trust Company had approximately $250 million
in trust assets under management.
The exchange ratio of the merger is fixed at ten shares of Gold Banc
common stock for each share of The Trust Company stock, for a total of 300,000
Gold Banc common shares. Gold Banc has 11.1 million shares of common stock
outstanding and the closing price as of August 31, 1998 was $14.25 per share.
The common stock of The Trust Company is not publicly traded.
Michael W. Gullion, Gold Banc President and Chief Executive Officer,
commented: "The Trust Company is a excellent addition to our family that will
significantly expand Gold Banc's presence as a leading provider of financial
services to our affiliate banks. This is our second non-bank acquisition this
year and is strategically notable because it represents another source of
fee-based income for our organization. This noninterest income helps further
diversify Gold Banc's revenue stream from the reliance a traditional bank
would have on primarily interest-sensitive products. In addition to our
rapidly growing core franchise in community banking, accretive non-bank
acquisitions are a part of our strategy to build a high-performance financial
services organization for our shareholders."
Lyman L. Frick, President of The Trust Company, said: "As a member of the
Gold Banc family, The Trust Company will not only have the benefit of access
to significantly greater financial resources, but to an even larger and
expanding base of prospective customers who need our services. Gold Banc, in
turn, will have the ability to offer its customers -- including individuals,
small businesses, not-for-profit groups and others -- the convenience of The
Trust Company's services via their regular banking activities. Both our
organizations have strong reputations for serving customers and the community,
and so we look forward to the start of this mutually beneficial relationship."
Set to close in the fourth quarter of 1998, The Trust Company 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 The Trust
Company's shareholders and the appropriate federal regulatory agencies.
When completed, the transaction is projected to boost Gold Banc's total
assets to approximately $806.7 million based on June 30, 1998 pro forma data,
which also includes the pending acquisition of First State Bank & Trust
Company of Pittsburg, Kansas.
About the Gold Banc Family
Gold Banc, a multi-bank holding company, currently owns and operates the
following family of community banks: Exchange National Bank, with locations
in Leawood, Shawnee and Marysville, Kansas; Citizens State Bank and Trust
Company, located in Seneca, Kansas; Peoples National Bank, Clay Center,
Kansas; Farmers National Bank, Oberlin, Kansas; the First National Bank in
Alma, located in Alma, Kansas; Farmers State Bank of Sabetha, Kansas; Tri-
County National Bank of Washington, Kansas; People's State Bank of Colby,
Kansas; and Provident Bank, f.s.b., located in St. Joseph, Missouri. 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. Gold Banc also owns
Midwest Capital Management, Inc., a full service broker/dealer and investment
management firm based in Kansas City, Missouri. In addition, pending but not
yet closed is the acquisition of First State Bank & Trust Company of
Pittsburg, Kansas.
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.
Visit the Gold Banc web site 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. & CFO,
keithb@goldbanc.com, or Brian J. Ruisinger, Investor Relations,
brianr@goldbanc.com, both of Gold Banc, 913-451-8050; Mike
Arneth, General Information, 312-640-6734, mga@chi.frbd.com, Paul
Scheeler, Analysts-Investors, 312-640-6742, pas@chi.frbd.com, or
Bess Gallanis, Media Inquiries, 312-640-6737, bag@chi.frbd.com,
all of The Financial Relations Board
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