Great Southern to sell branch network in Omaha, Neb.
Great Southern Bancorp in Springfield, Mo., has agreed to sell all four of its branches in Omaha, Neb., to West Gate Bank in Lincoln, Neb.
The $4.4 billion-asset Great Southern said in a regulatory filing Tuesday that it will also sell about $58 million in deposits to the $489 million-asset West Gate. The price was not disclosed.
Great Southern plans to keep a commercial loan office in Omaha.
The transaction is expected to close in July.
Great Southern said it expects to report a pretax gain of $6.5 million to $7 million, or 35 cents to 38 cents a share, tied to the sale.
The sale should also lower the company’s annual noninterest expense by $1.1 million to $1.2 million. Noninterest income is expected to fall by $300,000 to $350,000 annually.
Based on current interest rates for nondeposit funds, Great Southern estimated that its annual interest expense will rise by $300,000 to $350,000.