NBH Holdings Inc., a Boston-based bank holding company, announced a deal late Wednesday to acquire the commercial and retail banking operations of Bank Midwest National Association in Kansas City, Mo.
If approved, NBH will acquire 38 of the $4.3 billion-asset Bank Midwest's branches in Missouri and Kansas, as well as certain deposits and performing loans — the press release did not specify an amount. However, Bank Midwest's parent company, Dickinson Financial Corp., will retain all of the bank's capital, reserves and non-performing assets.
The $6 billion-asset Dickinson will also continue to own and operate the company's branches in retail stores, the press release said. According to its Web site, Bank Midwest operates 25 branches in Walmart stores in Missouri and Kansas.
The companies did not disclose the sale price in a press release. The deal, which is subject to regulatory approval, is expected to close in the fall.
Under the deal, the acquired branches would continue to operate under the Bank Midwest name, and the company's headquarters would remain in Kansas City.
This is the first acquisition for NBH, which raised more than $1 billion in a private placement in October in hopes of building a community banking operation through acquisitions. Company executives said at the time that they hoped to amass $12 billion in assets.
In a press release Wednesday, NBH chief executive Tim Laney said, "The new Bank Midwest will be very well capitalized and will have some of the strongest financial and asset quality ratios in U.S. banking. This marks an important first step in pursuit of our strategy to build community banks in targeted U.S. markets."
Bank Midwest has been struggling with nonperforming loans, and since May has been operating under a consent order requiring it to reduce nonperforming assets and boost capital.
Bank Midwest is Dickinson's largest subsidiary. It owns five other banks in California, Florida, Arizona, Colorado and Kansas. Its next largest bank is the $834.7 million-asset Armed Forces National Bank, in Fort Leavenworth, Kan.
