Kansas-based financial holding company Gold Banc has agreed to sell five Gold Bank branches to Olney Bancshares, an eight bank, $500 million holding company currently serving fourteen communities in Texas.
The Gold Bank branches involved in the deal are located in Oklahoma City, El Reno, Kingfisher, Hennessey and Enid. Gold Bank is the banking subsidiary of Gold Banc Corporation Inc.
The sale, which will be finalized upon receipt of regulatory approval, includes combined deposits of approximately $349 million and combined total loans of approximately $343 million. Mike Sterkel, community bank president of Gold’s Oklahoma City bank is expected to be CEO of Olney’s to-be-chartered Oklahoma state bank. Management and staff are expected to remain in place in all five branches.
Gold Bank will continue to operate its three banking locations in Tulsa as a part of its 32 location $4 billion banking and wealth management operations in Oklahoma, Kansas, Missouri and Florida. Gold Banc will receive a $34 million fixed premium for the sale, and will retain approximately $39.1 million of equity and $4.3 million of unallocated allowance for loan losses previously assigned to sold branches.
Gold Banc also said while the sale would shrink its balance sheet by 8.5%, it would free up approximately $39.1 million of equity and provide the group with the capital necessary to support growth in its core markets.