Brooke Corporation Acquires Generations Bank
January 08 2007 - 4:29PM
PR Newswire (US)
OVERLAND PARK, Kan., Jan. 8 /PRNewswire-FirstCall/ -- Robert D.
Orr, chairman and chief executive officer of Brooke Corporation
(NASDAQ:BXXX), announced that Brooke has acquired Generations Bank
from Kansas City Life Insurance Company for $10.1 million in cash.
Orr also announced that the Bank will operate under the name Brooke
Savings Bank. The U.S. Office of Thrift Supervision approved
Brooke's application to acquire the Bank on Dec. 29, 2006, and the
transaction closed today. Orr stated, "Our primary business is the
franchising of insurance agents. The acquisition of Brooke Savings
Bank is the continuation of a strategy to leverage our relationship
with independent insurance agents, especially Brooke franchisees,
to provide additional products and services that complement the
standard property and casualty insurance policies typically offered
by these agents. The bank will continue to provide its customers
with a combination of products and services that engenders the same
strong, mutually beneficial, long-term relationships that exist in
our insurance business." Orr added, "This acquisition is expected
to eventually expand the market that we target for franchise
recruitment from insurance agents that offer banking services to
complement their insurance sales, to bank agents that focus
primarily on the sale of banking services." Gary L. Baugh today was
elected chairman of the board, president and chief executive
officer of Brooke Savings Bank. Baugh noted, "Brooke Savings Bank
is an agent bank and its business plans center on the sale of
banking services to consumers through referrals from independent
agents. Most of Brooke Savings Bank's transactions with customers
occur electronically or through the mail. Because Brooke's mail
handling and IT units are located on its Phillipsburg, Kansas
campus, the main banking office for Brooke Savings Bank has been
relocated to Phillipsburg. Most of Brooke Savings Bank's employees,
including management, lending and compliance personnel, will work
in Brooke Corporation's Overland Park offices." Baugh added, "This
acquisition is a win-win for Brooke Savings Bank and for Brooke
franchisees. We believe that Brooke franchisees will provide an
inexpensive distribution channel for Brooke Savings Bank while
increasing the value of a Brooke franchise to independent insurance
agents." The transaction is expected to have minimal impact on
Brooke Corporation's overall consolidated 2007 annual earnings.
About our company . . . Brooke Corporation is listed on the Nasdaq
Global Market under the symbol "BXXX". Its wholly owned subsidiary,
Brooke Franchise Corporation, distributes insurance and banking
services through a network of more than 700 franchise locations.
Brooke Franchise was named the 22nd largest U.S. insurance agency
by Business Insurance magazine (2006) and the country's No. 37 top
franchise by Entrepreneur magazine (2007). For more information,
visit http://www.brookeagent.com/ . E-mail Distribution ... To
receive electronic press alerts, visit the Brooke Corporation Media
Room at http://brookecorp.mediaroom.com/ and subscribe to our
e-mail alerts online through the Get the News link. This press
release contains forward-looking statements. All forward- looking
statements involve risks and uncertainties, and several factors
could cause actual results to differ materially from those in the
forward-looking statements. The following factors, among others,
could cause actual results to differ from those indicated in the
forward-looking statements: the uncertainty that post-closing plans
relating to the acquisition will be successfully implemented, the
uncertainty as to the effect of the transaction on the respective
earnings of the Company and the Bank, the uncertainty that the
Company and the Bank will achieve their short-term and long-term
profitability and growth goals, uncertainties associated with
market acceptance of and demand for the Company's and Bank's
products and services, the impact of competitive products and
pricing, the dependence on third-party suppliers and their pricing,
the ability to meet product demand, the availability of funding
sources, the exposure to market risks, uncertainties associated
with the development of technology, changes in the law and in
economic, political and regulatory environments, changes in
management, the dependence on intellectual property rights, the
effectiveness of internal controls, and risks and factors described
from time to time in reports and registration statements filed by
Brooke Corporation with the Securities and Exchange Commission. A
more complete description of Brooke's business is provided in
Brooke Corporation's most recent annual, quarterly and current
reports, which are available from Brooke Corporation without charge
or at http://www.sec.gov/ . DATASOURCE: Brooke Corporation CONTACT:
Anita Larson of Brooke Corporation, +1-913-661-0123, Web site:
http://www.brookeagent.com/ http://www.brookecorp.com/
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