Home mortgages have been a mainstay for Capitol Federal Savings, the largest bank headquartered in Kansas.
But that’s about to change.
The holding company of the $9 billion-asset savings and loan is buying a bank — only its second acquisition in history — and will expand its business into commercial lending.
Capitol Federal Financial said it is acquiring Topeka-based Capital City Bank, which will allow Capitol Federal to make loans to businesses and related services, such as commercial deposits.
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John Dicus, Capitol Federal chairman and president, said in a news release that Capital City Bank has a similar culture of customer service and conservative lending.
“After growing our commercial real estate portfolio over the last 5 years through our correspondent lending network, we believe this is the right time to enter the commercial banking business through this low risk merger,” Dicus said.
Capital City CEO Bob Kobbeman will join Capitol Federal and lead its new commercial banking division.
The acquisition, expected to be completed by the end of October, is Topeka-based Capitol Federal’s second since its founding in 1893. Its first came in 1983 when it acquired Wichita-based Southwest Federal Savings and Loan.
Capitol Federal has eight branches in the Wichita area and ranks sixth in the area with deposits of more than $543,000, according to the Federal Deposit Insurance Corp.
Jerry Siebenmark: 316-268-6576, @jsiebenmark