Commercial Federal Corp. has agreed to acquire Perpetual Midwest Financial Inc., parent company of Perpetual Savings Bank, Cedar Rapids, Iowa.

The agreement calls for Commercial, based in Omaha, to pay $57.4 million in stock for $402 million-asset Perpetual.

Perpetual's five branches will become branches of the holding company's Commercial Federal Bank subsidiary.

"This acquisition is a great addition to Commercial Federal's Iowa franchise," said William A. Fitzgerald, chairman of the board and chief executive officer of the $7.2 billion-asset holding company.

Commercial Federal currently operates 108 branches in five states, including seven sites in Iowa. The company expects the deal to close during the second quarter. - Louis Whiteman

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