Centennial Bank said Friday its combination with Omaha State Bank is awaiting regulatory approval and, once finalized, the new institution will go by the name Core Bank.
The combination will create an Omaha-based bank with nine branches and $352 million in assets, based on Federal Deposit Insurance Corp. figures as of December 2012. The bank would be majority-owned by the children of Omaha businessman Walter Scott Jr., philanthropist and chairman emeritus of Peter Kiewit Sons’ Inc. The Scott family controls both banks.
“There are still a number of operational details to work out, but we are incredibly excited,” said Laurie Baedke, chief brand officer at Centennial Bank.
Baedke said there are many important decisions in the planning stages, including when the company will change things such as the signs on branches and the graphics on checks and other documents.
The proposed combination comes after Omaha State Bank last year fell under federal regulatory scrutiny. The oversight by the FDIC came after the 2012 first quarter during which loans not being paid as agreed jumped to 5.2 percent of total loans from 3.6 percent a year earlier. Omaha State Bank last year agreed to reform administrative, lending and operational practices as outlined by the FDIC after an examination.
The banks have been linked in some respects for some time. Centennial Bank CEO John Sorrell, slated to lead the new Core Bank, has been Omaha State Bank’s interim CEO since December.
He took over after former Omaha State Bank CEO Michael Dahir departed after a bank employee said Dahir brought a gun to work, showed it around and pointed it at her. Dahir was not charged with a crime. He told investigators that he displayed the handgun only in a jovial manner.
Neither Centennial nor Omaha State has a deposit market share in the metro area of more than 1 percent, according to FDIC deposit-share surveys.
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