Great Western Bank to Purchase F&M Bank in Iowa


SIOUX FALLS, SD, (February 1, 2010) – Great Western Bank today announced that it has signed an agreement to acquire F&M Bank-Iowa for a total purchase price of $50 million in cash or a premium of approximately $5 million.  The acquisition includes all 10 F&M Bank branches in Iowa.

F&M Bank is a subsidiary of Citizens Republic Bancorp, Inc. based in Michigan. The transaction is subject to regulatory approvals and other customary closing conditions, and is anticipated to close in the Spring of 2010. 

The agreement involves the acquisition of F&M branches in Iowa including the communities of Ames, Eldora, Gladbrook, Grinnell, Marshalltown (2), Newton, Prairie, Story City, and Sully.

Under the terms of the agreement Great Western Bank will acquire the entire F&M business comprised of approximately $470 million in assets, $410 million in deposits and $125 million in loans.  The loan portfolio was subject to extensive due diligence and excludes selected F&M loans which will remain with the Citizens Republic Bancorp.

The transaction will significantly enhance Great Western Bank’s position in Iowa. “The addition of these branches is consistent with our strategic growth plans. The acquisition will offer customers enhanced service opportunities and convenience,” explained Great Western Bank’s President and CEO, Jeff Erickson.  “Our new customers can look forward to the convenience of over 200 free ATMs throughout Iowa and nearly 20,000 throughout the United States. Customers will also find our product and service offerings among the most competitive in the region and our existing customers will enjoy several more convenient locations to choose from.”

Strategic Advantages

“This expansion opportunity fits well with our strategy, enhances our presence and demonstrates our commitment to our Iowa communities,” said Great Western Bank’s Iowa Regional President Allen Shafer. “Today, Great Western Bank has 28 locations in Iowa and with the F&M branches included there will be 38 locations for customers to do their business.”

On closing of the acquisition, Great Western Bank will have assets of approximately $5.8 billion, with 137 locations serving 86 communities throughout Iowa, Nebraska, Arizona, Colorado, Kansas, Missouri and South Dakota.


About Great Western Bank
Great Western Bank is a high-performing, community bank with over 1,000 employees. Great Western Bank’s parent company, National Australia Bank Limited (NAB), is an international AA rated financial services organization that provides a comprehensive and integrated range of financial products and services. NAB’s portfolio of businesses includes Great Western Bank in the US, NAB in Australia, BNZ in New Zealand, Clydesdale and Yorkshire Banks in the UK. NAB has more than 10 million customers, nearly 40,000 employees, over 400,000 shareholders and total assets of $550 billion.

Facts about GWB

Media Contacts