First Kansas Bank of Great Bend has agreed to acquire Bank of America branches in Great Bend and Hays, local bank officials announced Wednesday.
The deal, which involves deposits but not loans and is still subject to approval from banking regulators and closing conditions, is expected to be completed this summer, said Paul Snapp, First Kansas president and chief executive officer. No job losses are anticipated as a result of the sale.
“We are very excited to welcome these new customers to our existing banking family,” Snapp said. “These new locations demonstrate our commitment to the Golden Belt area as we enter our 113th year of service.”
In Great Bend, Bank of America operates its main location at 2006 Broadway, a drive-up facility at 2223 Broadway and an automated-teller machine in the Dillons store at 10th and McKinley.
These will continue as Bank of America locations until the deal is finalized, Snapp said. The buildings are leased by BOA and their continued use after the closing remains uncertain.
“First Kansas Bank is committed to a high level of personal service and community focused banking,” Snapp said. “We believe our new customers will enjoy the convenience of our five locations and seven ATMs.”
First Kansas Bank was founded in 1900 and has grown to $115 million in total assets with a capital account of over $8 million. It also operates full-service banking locations in Great Bend, Hoisington and Claflin.
First Kansas Bank offers loan and deposit services to consumers, commercial businesses and agricultural producers. Bauer Financial Services, the bank rating agency, has given First Kansas Bank its highest 5 Star rating for financial safety and soundness. They are part of a group of banks owned by the Sutherland Family.

A good fit
The Sutherland family owns banks in Hoisington, Salina, Emporia, and Parsons with branches in Great Bend, Claflin, Ellsworth, McPherson, Abilene, Chanute, Erie, Independence and Oswego. Although owned by the same family, these banks operate under different names and local control.
As a group, they are acquiring 10 Bank of America branches in Great Bend, Hays, Lindsborg, McPherson, Caney, Coffeyville, Independence, Hutchinson, Salina and Emporia, which will increase their total assets to approximately $1.1 billion.
This was a good fit for the banking company, Snapp said. Each of the BOA locations acquired were in communities with a Sutherland family bank or in a community in which the company wanted to increases its presence.
The Sutherland family also owns the Kansas City, Mo.,-based Sutherland Lumber Company which operates over 50 stores in 14 states. This includes the store in Great Bend that opened in the spring of 2013.

A changing landscape
Charlotte, N.C.,-based Bank of America serves approximately 50 million consumer and small business customers with approximately 5,100 retail banking offices and approximately 16,300 ATMs in all 50 states and globally. It also offers online banking with 30 million active users and more than 14 million mobile users.
The company serves clients through operations in more than 40 countries.  
It has about 40 other branches and 90 ATMs in Kansas.
This is not the first sell-off of BOA branches, said Diane Wagner, Chicago-based BOA regional spokesperson. “More and more people are doing their banking outside of banking centers.”
With mobile technology and online banking, the face of the industry is evolving, she said. “We are adapting to these changing needs.”
However, instead of closing the centers, BOA has opted to sell them. This is done, she said, to preserve the jobs.
The Bank of America Corporation is the second largest bank holding company in the United States by assets. As of 2010, Bank of America is the fifth-largest company in the United States by total revenue, and the third-largest non-oil company in the U.S. (after Walmart and General Electric). In 2010, Forbes listed Bank of America as the third biggest company in the world.
The bank’s 2008 acquisition of Merrill Lynch made Bank of America the world’s largest wealth management corporation and a major player in the investment banking market.
The company held 12.2 percent of all bank deposits in the United States in August 2009, and is one of the big four banks in the United States, along with Citigroup, JPMorgan Chase and Wells Fargo—its main competitors. It has a retail banking footprint that covers approximately 80 percent of the U.S. population.