Brooke Corporation Completes Bank of the West Transaction
OVERLAND PARK, Kan., Jan. 18 // PRNewswire-FirstCall // -- Brooke Corporation (NASDAQ: BXXX) today announced that it has completed the transaction between its wholly-owned subsidiary, Brooke Savings Bank, and Bank of the West. The transaction, which added approximately $100 million in deposits and $7.5 million in loans to Brooke Savings Bank's balance sheet, was approved by all required regulatory officials and became effective at the close of business on Jan. 18, 2008. Brooke Savings Bank paid a deposit premium of approximately $2.9 million. As part of the transaction, Brooke also acquired a network of 42 Kansas-based bank agents who refer deposit and loan business to the bank.
Customers of the Bank of the West's Kansas agent network received letters from both the Bank of the West and Brooke Savings Bank in December 2007 that explained the transition of deposit and loan accounts. On Jan. 18, 2008, all checking, savings, money market, certificate of deposit and IRA accounts, and selected consumer loan accounts, such as auto loans, home equity loans, and home equity line of credit loans that were opened through the Bank of the West Kansas agent network were transferred to Brooke Savings Bank.
"I am very excited about growth prospects of Brooke's bank agent platform," said Keith Bouchey, chief executive officer of Brooke Corporation. "The Bank of the West transaction augments our balance sheet creating a solid foundation for future expansion. The acquisition will also allow us to tap into local community relationships developed by the network of Kansas-based agents. My goal is to leverage these relationships and our nationwide network of insurance franchises to grow the bank's client base and ultimately, our assets."
Brooke Savings Bank is a federally-chartered savings bank with its home office located in Phillipsburg, Kan., and an administrative office located in Overland Park, Kan.
About Brooke Corporation
Brooke Corporation is a holding company listed on the Nasdaq Global Market under the symbol "BXXX". Brooke Corporation owns 100 percent of Brooke Bancshares, Inc., a banking organization with a federally-chartered thrift institution that operates an "agent bank". Brooke Corporation owns 62 percent of Brooke Credit Corporation, a finance company specializing in insurance-related lending. Brooke Corporation owns 81 percent of Brooke Capital Corporation (AMEX: BCP), an insurance organization with a life insurance company, an insurance agency franchisor and a non-standard auto insurance company.
About Brooke Savings Bank
Brooke Savings Bank is a federally chartered savings bank based in Kansas but authorized to conduct its operations throughout the United States. Brooke Savings Bank conducts its operations through commissioned agents who have contracted with the bank to refer deposit and loan customers. Brooke Savings Bank believes that agent banking represents a more efficient distribution system than traditional bank distribution systems and that this efficiency will ultimately result in pricing and other advantages to consumers.
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This press release contains forward-looking statements by Brooke Savings Bank. All forward-looking statements involve risks and uncertainties, and several factors could cause actual results to differ materially from those indicated 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 Brooke Savings Bank will successfully transition the management and data systems of the acquired operations, the uncertainty that customers of Bank of the West's network will remain customers of Brooke Savings Bank, the uncertainty that Brooke Savings Bank will achieve its short-term and long-term profitability and growth goals, uncertainties associated with market acceptance of and demand for Brooke Savings' products and services, the impact of competitive products and pricing, the ability to meet product demand, the exposure to market risks, the exposure to changes in interest rates, uncertainties associated with the development of technology, changes in the law and in economic, political and regulatory environments, changes in management, 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