Norman-based First American Bank has struck a deal to sell two of its branches in northwest Oklahoma to Elk City-based based Great Plains National Bank.
The First American branches in Woodward and Taloga that Great Plains would acquire in the deal have aggregate deposits of $64 million.
The acquisition will allow Great Plains to strengthen its presence in northwestern Oklahoma, Terry Shelby, president of Great Plains National Bank, said in a statement.
“With our existing customer relationships in northwest Oklahoma, the opportunity to acquire First American's branches is a natural fit in terms of evolution of our Company,” Shelby said. “We've been very selective when looking at M&A (merger and acquisition) opportunities, but this transaction provides good long-term value for our shareholders.”
First American decided to sell the branches to focus more on its seven remaining locations in central Oklahoma, which include branches in south Oklahoma City, Moore, Norman, Maysville and Purcell.
“It really does provide us a more efficient geographic focus on central Oklahoma, where our core group of banks are,” said Neil Schemmer, President of First American Bank.
Terms of the sale were not disclosed. Pending regulatory approval, the transaction is expected to close in the first quarter of 2014.
First American had $338 million in assets and $27 million in equity capital at the end of June.
Great Plains National Bank had $450 million in assets and $41 million in equity capital at the end of the second quarter of the year. Great Plains operates 12 branches, including recent additions in Piedmont and Tuttle.