Armed Forces Bank to buy mortgage lending operation

Dickinson Financial, the parent of Armed Forces Bank in Leavenworth, Kan., has agreed to buy the residential mortgage operations of KS StateBank in Manhattan, Kan.

The $1.2 billion-asset Armed Forces Bank did not disclose how much it will pay the $2.3 billion-asset KS StateBank. The transaction is expected to close in the fourth quarter.

The deal is expected to more than double Armed Forces Bank’s mortgage lending business and add four loan-production offices in Arizona, Kansas, and Minnesota. 

“We know how important home ownership is to establish financial security, creating wealth, and building community, which is why we are committed to expanding our residential mortgage banking services for all of our clients,” Paul Holewinski, Dickinson’s CEO, said in a press release. 

“We are excited to partner with KS StateBank, a bank like ours that has strong roots in the Midwest, but reach throughout the country that values and embodies trust in banking,” Holewinski added.