Topeka’s Capitol Federal Bank has purchased Capital City Bank for $37.5 million. Capitol Federal is the oldest bank based in Kansas and just celebrated its 125th year of being in business.
In the official press release from Capitol Federal, John B. Dicus, Chairman and President of Capitol Federal, stated: “We are pleased to be merging with Capital City Bank to introduce a full commercial banking experience to our customer base and communities. Capital City Bank has a long history of building a conservative, customer focused community bank, with an overlapping geographic focus in markets highly familiar to us – Topeka, Lawrence and the Overland Park market of Kansas City. Through the leadership of the Sabatini family, Capital City Bank has built a well-regarded company over the course of many decades, driven by the people and platforms we need to enter the commercial banking business in the right way and in a meaningful way. Through the many years of knowing the team at Capital City Bank, it is obvious to us that we hold a shared cultural approach to banking, focused on risk management and customer service. In addition, we are able to complete this merger and remain under $10 billion in assets, allowing us to continue our current dividend policy of paying 100% of earnings, while providing a positive upside.”
Matt Sabatini, Chairman of the Board of CCB, said: “Our ownership and senior management team are truly excited about the opportunity going forward, as we join Capitol Federal. With their size, branch network and strong capital position, the merger offers our team a wonderful chance to grow our commercial banking business. Because Capitol Federal Savings does not currently have a full suite of commercial banking operations, we will be able to provide a significant portion of our people a role in the combined organization. As a family-run bank for over 126 years this factor was of great importance to Frank Sabatini and our family.”