Two Kansas City area savings banks plan to merge into one institution with offices on both sides of the state line.
First Federal Bank of Kansas City and Inter-State Federal Savings and Loan of Kansas City, Kan., on Wednesday announced an agreement to combine. The merged banks will operate under First Federal’s name at their combined 11 branches, assuming the merger gains regulatory approval.
J.R. Buckner, president of First Federal, said the combination will add to the products each bank’s customers see and make banking more convenient with the additional locations.
“We both have customers who live on one side and commute to the other” side of the state line, Buckner said.
Buckner will be president after the merger. First Federal’s Clarence Zugelter will be chairman. Rich Merker, president of Inter-State Federal, will be Kansas market president.
Each of the savings banks operates under a mutual form of ownership, having no stockholders but essentially belonging to its depositors. It means the merger doesn’t involve the typical sale by one set of owners to another and the resulting bank will still be owned by its depositors.
Combined, the banks have $650 million in assets, including $380 million in loans. Each operated profitably last year, according to financial reports from the Federal Deposit Insurance Corp.
This article was corrected to indicate Clarence Zugelter’s current position as chairman is with First Federal.