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Archive for Tuesday, September 6, 2011

University National Bank acquired in merger

September 6, 2011

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Wichita-based Equity Bank has announced its intention to merge with University National Bank, 1400 Kasold Drive, and acquire four branch locations in Topeka from Citizens Bank & Trust.

The banks in Lawrence and Topeka will change their names to Equity Bank by year’s end, according to a statement from Equity Bank.

Todd Sutherland, University National Bank’s CEO, will continue to lead the bank in Lawrence.

On Tuesday afternoon, Sutherland said customers should see more products and services available to them as a result of the changes as the bank has more access to capital.

Decisions on local staffing levels had not yet been made, Sutherland said, but he said given that it the merger was done with an out-of-market bank “should be good” for staffing levels.

After the expansion, Equity reported that it would have about $680 million in assets.

In the statement, Brad Elliott, Equity Bank’s chairman and CEO, said that the transactions would benefit customers.

“These transactions will benefit both our new customers as well as our current customers that do business in those markets,” Elliott said. “We see tremendous opportunity in both Lawrence and Topeka.”

University National Bank was founded in Lawrence in 1988, Sutherland said.

Financial terms of the deal were not disclosed, and it is subject to regulatory approval.

Comments

Hudson Luce 2 years, 7 months ago

UNB started out 2011 with $8.5 million in equity capital, and lost about $1.9 million of that by the end of June 2011, $1.442 million due to charge-offs on "construction loans and all land development and other land loans", $0.343 million due to charge-offs on "Commercial and industrial loans", the rest being charge-offs on residential mortgages. Perhaps July and August were similar, but I'll bet that they've been looking for a merger for a while to avoid OCC action. Source for these figures is Call_Cert32606-063011.pdf, available from http://www3.fdic.gov/idasp/main.asp (just list all the banks for Lawrence KS and you can get complete reports on all of them, or just University National - you'll get a list you can choose from)

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Steve Jacob 2 years, 7 months ago

They have been in trouble for a couple of years. This had to be a much better option then just letting the FDIC take it over.

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toe 2 years, 7 months ago

I wonder if University National was under capitalized?

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