Arvest Bank said it has entered an agreement to purchase Union Bank of Kansas City which has 10 branches in that market. This will double Arvest’s number of branches in the large metropolitan area of 2.87 million people.
Terms of the deal have not been disclosed, but Arvest will acquire all the assets and liabilities of the bank, according to bank officials from both institutions. The transaction requires approval from banking regulators and is expected to be completed in 90 to 120 days, according to the release.
Union Bank was on the FDIC watch list of troubled banks, posting $15.5 million in losses through the first nine months of 2011, according filings with the Federal Deposit Insurance Corp. Assets as of Dec. 31 were $459 million at Union Bank.
Jeff Jernigan, Union Bank CEO stated in the release, “As we assessed the best way to serve our loyal customers every day, it was clear that fresh ownership with deeper resources was the best course in a difficult economic environment.”
He said Arvest Bank is a perfect fit because of its approach to customer service and their commitment to long-term growth in the Kansas City region.
Mark Larrabee, president & CEO of Arvest Bank in Kansas City, said “The addition of the Union Bank franchise will double the number of full-service Arvest branches in Kansas City and more than double our total assets in the market.”
Arvest came to the Kansas City area in November 2009 when it purchased Harrington Bank. Soon after, Arvest bought SolutionsBank saving it from FDIC closure.
Arvest operates more than 230 bank branches in Kansas, Missouri, Arkansas and Oklahoma. The bank’s majority owner is Jim Walton, son of Wal-Mart founders Helen and Sam Walton.