Great Western Bank, a South Dakota-based community bank, has signed an agreement with F&M Bank, a wholly-owned subsidiary of Michigan-based Citizens Republic Bancorp, to acquire all 10 F&M Bank branches in Iowa, for $50m in cash or a premium of approximately $5m.
Under the terms of the agreement Great Western Bank will acquire the entire F&M business comprised of approximately $470m in assets, $410m in deposits and $125m in loans.
Jeff Erickson, president and CEO of Great Western Bank, said: “The addition of these branches is consistent with our strategic growth plans. The acquisition will offer customers enhanced service opportunities and convenience. Our new customers can look forward to the convenience of over 200 free ATMs throughout Iowa and nearly 20,000 throughout the US.
“Customers will also find our product and service offerings among the most competitive in the region and our existing customers will enjoy several more convenient locations to choose from.”
Allen Shafer, regional president of Iowa at Great Western Bank, said: “This expansion opportunity fits well with our strategy, enhances our presence and demonstrates our commitment to our Iowa communities. Today, Great Western Bank has 28 locations in Iowa and with the F&M branches included there will be 38 locations for customers to do their business.”
The transaction is subject to regulatory approvals and other customary closing conditions, and is anticipated to close in the Spring of 2010.
Great Western Bank’s parent company, National Australia Bank Limited (NAB), is a global financial services organization.