Arvest Bank of Bentonville on Monday said it agrees to buy "substantially" all assets and liabilities of Union Bank in Kansas City, Mo., which would double the number of branches Arvest has in the area.
"As we assessed the best way to serve our loyal customers every day, it was clear that fresh ownership with deeper resources was the best course in a difficult economic environment," Jeff Jernigan, Union Bank president and CEO, said in a news release. "Arvest Bank is a perfect fit because of its approach to customer service and their commitment to long-term growth in the Kansas City region."
The deal is subject to approval by banking regulators and is expected to be completed in 90 to 120 days. A purchase price and other financial details were not disclosed.
Union Bank, which was founded as Bannister Bank & Trust in 1965, operates 10 branches in the Kansas City area. As of Dec. 31, it had assets of $459 million. According to the Kansas City Star, the bank has been suffering from loan losses and a capital shortfall.
Jernigan said the transition to new ownership will have "little or no immediate effect" on Union customers. He said account terms, conditions and policies will remain unchanged until after the sale is complete.
Arvest 10 branches in the Kansas City area, which it entered in 2009 with the purchase of Harrington Bank. By the end of the year, it had assumed all the deposits of SolutionsBank of nearby Overland Park, Kan., further establishing its foundation in the area.
Mark Larrabee is president and CEO of Arvest Bank in Kansas City.
In all, Arvest operates more than 240 bank branches in Kansas, Missouri, Arkansas and Oklahoma. In Arkansas, Arvest is the largest bank chartered in the state. It also the 93rd largest financial institution in the country, with assets of $12.5 billion as of Sept. 30.
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