Great Southern Bank, a subsidiary of Great Southern Bancorp, Inc., has entered into a purchase and assumption agreement with loss share with the Federal Deposit Insurance Corporation (FDIC) to assume all of the deposits (excluding brokered deposits) and certain assets of TeamBank, N.A., a full service commercial bank headquartered in Paola, Kan. All TeamBank offices with regular Saturday operating hours will open on Saturday, March 21, 2009, as branches of Great Southern Bank. TeamBank depositors will automatically become depositors of Great Southern Bank, and deposits will continue to be insured by the FDIC. With this acquisition, Great Southern will now operate 56 retail banking centers in three states.
Over the weekend, depositors of TeamBank can access their money by writing checks or using ATM or debit cards. Checks drawn on TeamBank will continue to be processed. Loan customers should continue to make their payments as usual. Customers of both banks should continue to bank as they normally do at their existing branches until Great Southern can fully integrate the deposit records of TeamBank.
“We warmly welcome TeamBank customers to Great Southern,” says Joseph W. Turner, Great Southern president and CEO. “Customers can be confident that their deposits are safe and readily accessible. It’s business as usual. Great Southern has served customers’ financial needs for 86 years with a deep commitment to building winning relationships. We look forward to the opportunity to continue to serve TeamBank customers with the same quality service they have come to expect.”
TeamBank operated 17 locations with nine facilities in the Kansas City metropolitan area, three facilities in southeast Kansas, two locations in Missouri, and three in metropolitan Omaha, Neb. Great Southern will be assuming approximately $474 million of the deposits of TeamBank at a premium of 1%. Additionally, Great Southern is purchasing approximately $443 million in loans and $7 million of other real estate owned (ORE) at a discount of $100 million. The loans and ORE purchased are covered by a loss share agreement between the FDIC and Great Southern which affords Great Southern significant protection. Under such agreement, the FDIC has agreed to cover 80% of the losses on the disposition of the loans and ORE up to $115 million, and 95% of losses that exceed that amount. In addition, Great Southern will also be purchasing cash and other marketable securities of TeamBank. Great Southern did not assume brokered deposits, the trust department or the subsidiary, TeamBank N.A. Asset Corporation.
“We were attracted to this acquisition because of the strong customer relationships TeamBank has formed through the years,” says Turner. “This acquisition further strengthens our Company with the addition of nearly 37,000 customer deposit accounts and expansion capabilities in two new states, Kansas and Nebraska. Before and after this acquisition, the Company’s capital ratios were well in excess of regulatory requirements to be considered “well capitalized.”
Customers who have questions about the transaction can call the FDIC Call Center toll-free at 1.800.830.4697. The phone number is operational this evening until 9:00 p.m. Central Time; on Saturday from 8:00 a.m. to 6:00 p.m. Central Time.; on Sunday from noon to 6:00 p.m. Central Time and, thereafter, from 8:00 a.m. to 8:00 p.m. Central Time. Information is also available from the FDIC’s website at www.fdic.gov. In addition, they can visit their former TeamBank branch should they have questions about their banking relationship.
Headquartered in Springfield, Mo., Great Southern offers banking, investment, insurance and travel services. Including this acquisition, Great Southern now operates 56 retail banking centers and 180 ATMs in Missouri, Kansas and Nebraska. The company also serves lending needs through loan production offices in Overland Park, Kan., Rogers, Ark., and St. Louis. With $2.7 billion in assets, Great Southern Bancorp is a public company and its common stock (ticker: GSBC) is listed on the NASDAQ Global Select stock exchange.
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