Midland National Bank to Merge with Union State Bank Pending Regulatory Approvals
ARKANSAS CITY, KS (October 15, 2019)—Docking Bancshares, Inc. parent company of Arkansas City, KS based Union State Bank, and Midland Financial Corporation, parent company of Midland National Bank headquartered in Newton, KS, are pleased to announce the signing of an agreement for Docking Bancshares, Inc. to acquire Midland Financial Corporation and its subsidiary, Midland National Bank. The transaction is anticipated to close in the 4th quarter of this year; however, Midland National Bank will continue to operate separately as “Midland”, a division of Union State Bank, until the third quarter of 2020 when the banking systems are converted. At that time, the bank will rebrand to Union State Bank.
Until the bank system conversion and rebranding is complete, customers of Union State Bank and Midland National Bank should continue to conduct business as usual at their existing bank locations. Throughout the process, customers of Midland National Bank can expect to receive additional information from Union State Bank well in advance of any changes. If customers have questions, they should contact their local branch office.
Eric Kurtz, President and Chief Executive Officer of Union State Bank, stated “Both organizations are deeply-rooted in the communities in which we serve, with Midland celebrating its 126th year anniversary and Union State Bank celebrating its 111th year anniversary. As we look towards the future of community banking, we have been specifically searching for a franchise team that exhibits a similar fabric of goals and values not only in providing best-in-class banking services for customers, but also in providing a top-tier environment that positively impacts the daily lives of all other stakeholders and employees. As such, we are tremendously pleased that Midland National’s President, Ron Lang, has agreed to continue to work with us in the position of Market President. Ron’s knowledge of the community and Midland’s customers is a tremendous asset as he shares our philosophy in how we value our customer relationships and how we conduct our banking business.”
Bill Docking, President, CEO, and Chairman of the Board for Docking Bancshares, Inc. stated, “We are extremely pleased with this opportunity to expand our bank locations into Newton. However, this purchase was about much more than that. Our banks complement each other. Both banks share the same values of providing exceptional customer service, community support and–most importantly–trust. This will be Union State Bank’s third community bank merger since 2006 and we have endeavored in our previous acquisitions to ensure successful continuity through a smooth transition for customers and employees alike. Midland National Bank customers can be assured that we will continue to offer the hometown service and hometown values to which they’ve grown accustomed.”
Commenting on the announcement John Suderman, Chairman of the Board of Midland National Bank stated, “We look forward to working with the team at Union State Bank to make this a successful and seamless transition for everyone involved. Union State Bank is a financially-sound community bank with a long and rich history of community involvement and personalized customer service. It is evident to me this opportunity will enhance our ability to provide elevated banking options with the convenience of more locations across Kansas coupled with a broader array of financial products and services. It’s definitely a win-win for both of our banks and our customers.”
At closing the merger will bring Union State Bank’s total asset size to more than $475 million and add five additional Kansas branch locations. The transaction is subject to customary closing conditions, including the approvals of the appropriate regulatory authorities and the shareholders of Midland Financial Corporation.
Sandler O’Neill + Partners, L.P. and The Capital Corporation served as financial advisors, and Stinson LLP served as legal counsel to Docking Bancshares, Inc. Hampton & Royce, L.C. served as legal counsel to Midland Financial Corporation.
About Docking Bancshares and Union State Bank
Docking Bancshares, Inc. is a privately held holding company, headquartered in Arkansas City, Kansas and the parent company of Union State Bank. Since 1956 control of Union State Bank has resided with the Docking Family, with Bill Docking serving as the Board Chairman and Brian Docking serving as Senior Vice-Chair of the Board of Directors. Eric Kurtz has served as the President since 2011 and the CEO since 2014. As of June 30, 2019, the holding company and its subsidiary bank had assets totaling $339 million.
Founded in 1908, Union State Bank has ten banking locations serving communities of Arkansas City, Udall, Winfield and Wichita in Kansas and Bartlesville and Edmond in Oklahoma. Union State Bank offers a full range of electronic, deposit and cash management services, as well as business and agriculture, commercial real estate, construction, mortgage, residential and consumer loans.
About Midland National Bank
Midland National Bank is a $136 million (6/30/19) community bank established in Newton, KS in 1893. The bank has five banking locations serving Newton and the surrounding areas. For more information, visit Midland National Bank’s website at www.midland.bank.