Gold Banc in Deal to Buy Kansas County-Seat Bank

Gold Banc has agreed to buy Farmers Bancshares, Oberlin, for $5.6 million in cash and stock.

The acquisition, the second for the fast-growing Gold Banc this year, would give the multibank holding company a firm grip on the deposit market in Decatur County, Farmers' primary market. The $55.6 million-asset Farmers, which operates two offices, has a 72% market share in the county.

"We are pleased to have Farmers become part of the Gold Banc family as we continue to build one of the country's fastest-growing community banking organizations," Gold Banc president and chief executive officer Michael W. Gullion said. "We continue to seek prosperous community banks like Farmers that have strong market share and want to preserve their local identity and decision-making."

Gold Banc, which also has a pending agreement to buy Clay Center-based Peoples Bancshares in August, would have $432 million of assets after the Farmers deal closes this year. Farmers would be one of five subsidiaries, all located in county seats, with separate boards and management.

"With some of the larger banks making banks into branches, we're trying to be different than the bigger guys," said Keith E. Bouchey, Gold Banc executive vice president and chief financial officer.

The agreement calls for shareholders to receive 65% stock and 35% cash. The stock portion consists of an exchange of 7.5 shares of Gold Banc stock for each Farmers share not held by the smaller bank's employee stock ownership plan. ESOP holders would receive only cash. Gold Banc would pay a total of $1.96 million in cash.

The transaction, which must be approved by regulators and shareholders, is expected to close in the fourth quarter. Gold Banc officials said they expect it to boost earnings beginning in 1998.