NU Online News Service, Oct. 27, 2004, 10:15 a.m. EST
Kansas City Life Insurance Company has agreed to sell its interest in Generation Bank to a consortium of local investors.[@@]
The company, in Kansas City, Mo., says it will sell its shares in the federal savings bank for about $10.1 million in cash. The transaction requires approval by the Office of Thrift Supervision and is expected to close in early 2005.
The bank is valued at about 2% of Kansas City Life’s $4.6 billion in total assets as of June 30, 2004, according to R. Philip Bixby, president and chief executive officer of Kansas City Life and chairman of Generations Bank.
Kansas City Life decided to get out of the banking business to concentrate on its core business of insurance, Bixby says. It opened the bank in July 2000.
“Although we have seen how banking services complement our life insurance and investment products, our efforts are best oriented to helping clients and agents in our traditional markets,” Bixby said.
The transaction was arranged by the investment banking firm Index Capital LLC, Leawood, Kan.