Great Western's parent purchasing Iowa bank
Great Western Bank's three branch locations in Larimer and Weld counties are not expected to be affected by the bank's purchase of First Federal Savings Bank of Iowa. Great Western has two locations in Fort Collins and one in Erie.
The transaction is expected to include assets of about $433 million and to include 11 bank locations around Iowa. It is expected to close this summer, pending regulatory approvals.
Shareholders in First Federal's parent company, North Central Bancshares Inc., will be entitled to receive $30.58 per share as part of the transaction. Great Western Bank's parent company, Great Western Bancorp. Inc. in Sioux Falls, S.D., will buy the shares.
"The transaction is consistent with our strategic growth plans and will enhance Great Western Bank's presence in Iowa, the second-largest agricultural producing state in the United States," Ken Karels, Great Western Bank's president and chief executive, said in a statement.
Following the transaction, Great Western Bank expects to have $8.9 billion in assets, the bank said in the statement. The bank focuses on agribusiness and commercial lending at more than 200 locations in Colorado, Iowa, Arizona, Kansas, Missouri, Nebraska and South Dakota.
Great Western's ultimate parent company, National Australia Bank Limited, is an international financial services organization with more than $750 billion in assets.
Great Western entered the Northern Colorado market in 2009 with the purchase of First Community Bank's Colorado branches.
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