United Republic Bank of Omaha will keep its name after a planned acquisition combines its assets with those of a holding company that consists of five bank branches.
Central Bancshares, based in Cambridge, Nebraska, plans to acquire the $109 million in assets of United Republic Bank, which was formed in 2006 and ended a 16-year spell during which no new banks were chartered in the state.
Including other assets held by the banks’ respective holding companies, the resulting organization will comprise about $330 million in total assets. Terms of the deal were not disclosed.
“This transaction will diversify our banks and increase our existing footprint to add value to all of our customers,” said Don Moore, president and chief executive of First Central Bank and First Central Bank McCook.
Where those banks’ assets skew more heavily to farmers, ranchers and businesses dealing with agriculture, the Omaha bank brings to the table more commercial real estate-type assets, said Mike Pate, president and chief executive of United Republic Bank.
Such diversity will help the banks as well as the customers they serve, executives from both banks said.
“The intent of this merger wasn’t to disrupt anything at all that we were doing locally. It’s just a matter of increasing their footprint across the state and finding an acquisition in a growth community like Omaha to do that in,” Pate said.
Bank officials expect federal regulators to approve the deal during the fourth quarter of this year. Shareholders of United Republic’s parent company will vote on the deal in mid-September.