LINCOLN, Neb.—Premier Bank is asking the District Court of Lancaster County here to overturn the recent decision by the Nebraska Department of Banking and Finance that blocked its sale to the $7.8-billion GreenState Credit Union.
As CUtoday.info reported, North Liberty, Iowa-based GreenState’s bid to acquire the $395-million Premier Bank, based in Omaha, Neb., was recently rejected by the Nebraska Department of Banking and Finance.
Premier Bank has filed a petition in the district court to review the order handed down by the Banking Department.
In the original order the Department stated Premier Bank lacked legal standing to sell its assets to GreenState, with the court ruling that GreenState, as a credit union organized under Iowa laws, is not qualified to purchase Premier Bank under Nebraska statutes.
‘Commonplace’ Transactions
But in its petition Premier Bank argues precedent for such a sale has long been established by the Office of the Comptroller of the Currency.
“National Banks have long been authorized to engage in purchase an assumption transactions both as seller and buyer as part of their general banking powers…” the petition states. “Such purchase and assumption transactions are commonplace in the banking industry. The OCC has approved many such transactions, including transactions in which a national bank sold substantially all its business.”
A call by CUToday.info to the Nebraska Department of Banking was not returned by press time.