The Nebraska Department of Banking and Finance has shot down the proposed sale of Premier Bank in Omaha to an Iowa credit union.
The agency formally denied the application submitted by the $395 million-asset Premier after the bank failed to provide evidence supporting the legality of the deal it had reached with the $8 billion-asset GreenState Credit Union in North Liberty, Iowa.
“Premier has not carried its burden of proof in this proceeding to show that there is express power under federal law for a national bank to sell substantially all of its assets under the factual circumstances presented in this proceeding,” the agency said as part of the decision published Dec. 30.
During a Sept. 20 hearing, the
Chris Maher, chairman and CEO of Premier, stated his bank is disappointed with the ruling but remains confident that “a proper interpretation of Nebraska law will overturn the decision and allow Nebraskans a free market to choose their preferred financial services provider.”
One of the primary conclusions drawn by the NDBF against the sale was that because GreenState is established according to the laws of its home state of Iowa, it does not meet the definition of a “financial institution” that can participate in cross-industry acquisitions or mergers in Nebraska.
“A financial institution by definition excludes a financial institution organized under the laws of another state, rather than under Nebraska's laws or under the laws of the United States doing business in Nebraska … GreenState is a credit union organized under the laws of the state of Iowa and is not a financial institution authorized to acquire a Nebraska financial institution under such statute,” the agency said.
A spokesperson for the credit union stressed that while disappointed with the decision, GreenState remains optimistic that the deal will eventually be finalized.
“The efforts made by the Nebraska Bankers Association are simply blocking consumer choice for Nebraskans … GreenState will create jobs, give back to the local community and put money back into the pockets of its Nebraska members,” the credit union said in a prepared statement.
This denial is not the first time the credit union has faced regulatory pushback.
In 2019, when GreenState was in the midst of
First American eventually reached a
GreenState’s deal for Premier added to a