Legacy Bank in Colwich, Kan., has reached its first deal in its 126-year history with an agreement to buy Alliant Bank in Sedgwick, Kan.
The $257 million-asset Legacy is buying the assets and liabilities of the $15 million-asset Alliant but not its charter, the Wichita Business Journal reported Tuesday.
Alliant, which was established in 1894 under the name Sedgwick State Bank, has one branch north of Wichita in Sedgwick. The need to offer more services such as Internet banking and additional regulatory requirements made it difficult for the tiny Alliant to stay independent, Bill Freidline, chairman of Alliant, said, according to the Wichita Business Journal.
Alliant also has struggled under the weight of soured out-of-state participation loans made before the financial crisis, the Wichita Business Journal reported. It has been operating under a cease-and-desist order from the Federal Deposit Insurance Corp. since June 2007 that required it to maintain at least a Tier 1 capital ratio of at least 8% and a total risk-based capital ratio of at least 10%.
At March 31, Alliant had a core capital (leverage) ratio of 3.04% and a total risk-based capital ratio of 8.25% while noncurrent loans totaled 7.03%, according to the FDIC.
Legacy has four branches in Wichita and one in the nearby Colwich.
The financial terms of the deal, which is expected to close in August, were not disclosed, the Wichita Business Journal reported.