Gold Banc Corp.'s agreement to pay $16 million to settle a suit claiming it overcharged agricultural borrowers will probably force a revision in its $672 million deal to sell itself to an investor group.
Gold Banc said Monday that it would take a $14 million charge against second-quarter earnings to pay for the settlement. The Leawood, Kan., company said its insurance would cover $2 million. As a result it has reduced its second-quarter and six-month profit to $309,000 and $13.6 million, respectively.
Spokesman Sherman Titens said in an interview Monday that Gold Banc expects to hold further talks with the investor group, which is led by C. Stanley Bailey, the former chief executive of Superior Financial Corp. in Fort Smith, Ark.
The lawsuit, which Gold disclosed June 14, was filed by a private citizen and former Gold borrower, Roger L. Ediger, on behalf of the federal government.
