A small Kansas bank will significantly increase its assets with a deal for an even smaller Missouri bank.
Great American Bank in De Soto, Kan., has agreed to buy Lone Summit Bank in Lake Lotawana, Mo. Great American, a unit of the two-bank holding company First Financial Bancshares in Lawrence, Kan., will assume all loans and deposits of Lone Summit, Great American said on its website Thursday.
Great American has two branches and $58 million of assets while Lone Summit, a unit of Lone Summit Bancorp, has $26 million of assets and one branch. Lone Summit has struggled, reporting only $8,000 in net operating income at March 31, compared to a $164,000 loss a year earlier, according to the Federal Deposit Insurance Corp. The bank entered into a consent order with the FDIC in September 2010 that required it to hire a chief executive with appropriate experience to help improve its financial condition.
Under the consent order, Lone Summit also had to maintain a Tier 1 leverage capital ratio of at least 8% and a total risk-based capital ratio of at least 12%. At March 31, its core capital ratio was 2.73% and its total risk-based capital ratio was 5.25%, according to the FDIC.
Great American's last acquisition involved the failed First Bank of Kansas City in 2009.
The deal is expected to close in the fourth quarter; financial terms were not disclosed.
The Kansas City Business Journal first reported the deal on Thursday.