First Federal Bank of Kansas City Restructures to Access New Avenues to Raise Capital

First Federal Bank of Kansas City's restructuring will make the bank wholly owned by a new mutual holding company.

Posted May 30, 2024

Leawood-based First Federal Bank of Kansas City reorganized its corporate structure resulting in the formation of a new mutual holding company called Cosperity Bancorp, Inc.

As a result of the restructuring, First Federal Bank is now a Missouri stock savings bank wholly owned by Cosperity, according to a release.

“We believe this structure will provide us with greater flexibility to grow and diversify into other financial service activities that will benefit our customers while preserving our institution’s historical commitment to mutuality,” bank president and CEO J.R. Buckner said in the release.

The bank’s depositors voted to approve the reorganization at a special meeting in March, followed by state and federal regulators’ approval.

“In its current state, the bank can only raise capital through organic earnings,” CFO David Houchen said in the release. “The mutual holding company will present us with a new avenue to raise capital without going public, allowing us to remain independent and continue our focus on serving the community for years to come.”

The First Federal Bank of Kansas City reported assets of $935.4 million in 2022. The bank ranked No. 25 in The Power Book 2024 edition Powered by Ingram’s. The bank serves more than 25,000 customers across 11 locations in the KC metro area.