(Monday, January 08, 2007) - Robert D. Orr,
chairman and chief executive officer of Brooke Corporation (NASDAQ: BXXX), announced that Brooke has acquired Generations Bank from Kansas City Life
Insurance Company for $10.1 million in cash. Orr also announced that the Bank
will operate under the name Brooke Savings Bank. The U.S. Office of Thrift
Supervision approved Brooke's application to acquire the Bank on Dec. 29,
2006, and the transaction closed today.
Orr stated, "Our primary business is the franchising of insurance agents. The
acquisition of Brooke Savings Bank is the continuation of a strategy to
leverage our relationship with independent insurance agents, especially
Brooke franchisees, to provide additional products and services that
complement the standard property and casualty insurance policies typically
offered by these agents. The bank will continue to provide its customers with
a combination of products and services that engenders the same strong,
mutually beneficial, long-term relationships that exist in our insurance
business."
Orr added, "This acquisition is expected to eventually expand the market that
we target for franchise recruitment from insurance agents that offer banking
services to complement their insurance sales, to bank agents that focus
primarily on the sale of banking services."
Gary L. Baugh today was elected chairman of the board, president and chief
executive officer of Brooke Savings Bank. Baugh noted, "Brooke Savings Bank
is an agent bank and its business plans center on the sale of banking
services to consumers through referrals from independent agents. Most of
Brooke Savings Bank's transactions with customers occur electronically or
through the mail. Because Brooke's mail handling and IT units are located on
its Phillipsburg, Kansas campus, the main banking office for Brooke Savings
Bank has been relocated to Phillipsburg. Most of Brooke Savings Bank's
employees, including management, lending and compliance personnel, will work
in Brooke Corporation's Overland Park offices."
Baugh added, "This acquisition is a win-win for Brooke Savings Bank and for
Brooke franchisees. We believe that Brooke franchisees will provide an
inexpensive distribution channel for Brooke Savings Bank while increasing the
value of a Brooke franchise to independent insurance agents."
The transaction is expected to have minimal impact on Brooke Corporation's
overall consolidated 2007 annual earnings.
About our company . . . Brooke Corporation is listed on the Nasdaq Global
Market under the symbol "BXXX". Its wholly owned subsidiary, Brooke Franchise
Corporation, distributes insurance and banking services through a network of
more than 700 franchise locations. Brooke Franchise was named the 22nd
largest U.S. insurance agency by Business Insurance magazine (2006) and the
country's No. 37 top franchise by Entrepreneur magazine (2007).
For more information, visit http://www.brookeagent.com/ .
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This press release contains forward-looking statements. All forward- looking
statements involve risks and uncertainties, and several factors could cause
actual results to differ materially from those in the forward-looking
statements. The following factors, among others, could cause actual results
to differ from those indicated in the forward-looking statements: the
uncertainty that post-closing plans relating to the acquisition will be
successfully implemented, the uncertainty as to the effect of the transaction
on the respective earnings of the Company and the Bank, the uncertainty that
the Company and the Bank will achieve their short-term and long-term
profitability and growth goals, uncertainties associated with market
acceptance of and demand for the Company's and Bank's products and services,
the impact of competitive products and pricing, the dependence on third-party
suppliers and their pricing, the ability to meet product demand, the
availability of funding sources, the exposure to market risks, uncertainties
associated with the development of technology, changes in the law and in
economic, political and regulatory environments, changes in management, the
dependence on intellectual property rights, the effectiveness of internal
controls, and risks and factors described from time to time in reports and
registration statements filed by Brooke Corporation with the Securities and
Exchange Commission. A more complete description of Brooke's business is
provided in Brooke Corporation's most recent annual, quarterly and current
reports, which are available from Brooke Corporation without charge or at
http://www.sec.gov/ .
SOURCE: Brooke Corporation
CONTACT: Anita Larson of Brooke Corporation, +1-913-661-0123,
larsa@brookecorp.com
Web site: http://www.brookeagent.com/
http://www.brookecorp.com/
Brooke Corporation believes that small locally owned insurance agencies generally distribute insurance more efficiently than large insurance brokers if supported by an established franchisor.