Equity Bank’s $73.6 million merger with American State Bank will be historic. Here’s why

Equity Bank is set to acquire American State Bank & Trust in a historic transaction — the largest merger of state-chartered banks in Kansas history.

Equity’s parent company, Equity Bancshares, announced the $73.6 million acquisition Monday morning, saying the deal should be finalized in early October.

The combined company will have approximately $5 billion in assets.

“Based on the asset size of the resulting institution, it would be the largest merger of state-chartered banks in Kansas,” Kansas Bank Commissioner David Herndon confirmed Monday afternoon.

Equity CEO Brad Elliott called ASB an “excellent community bank” that values “customized personal service and entrepreneurial spirit.”

“Kansas is home to numerous, thriving communities with customers who desire a community banking approach, and our institutions match up well in terms of mindset and geographic fit,” Elliott said in a release.

Under the terms of the agreement, ASB will merge with and into Equity.

“To combine these banks makes us all stronger,” said Lee Borck, chairman of the ASB board.

“We’re fortunate to find a partner that will continue our tradition of innovation for our customers and families throughout our Kansas footprint — and add additional locations, bankers and expertise near our customers’ businesses and homes.”

Founded in Wichita in 2002, Equity currently has 52 locations across Kansas, Missouri, Arkansas and Oklahoma.

The ASB acquisition will add 17 more Kansas locations serving Wichita, Great Bend, Salina, Garden City, Belleville, Clyde, Concordia, Holcomb, Larned, Macksville and St. John.

According to the release, the institutions’ combined deposits would rank seventh in the state in deposit market share and fourth among banks headquartered in Kansas.

Under the agreement, a number of ASB leaders, including Borck and president Doug Thurman, will continue working for Equity.