South Dakota-based Great Western Bancorporation says it is buying the company that owns First Federal Savings Bank of Iowa for $41.5 million.
The corporate parent of Great Western Bank expects its deal for North Central Bancshares to close by summer.
Great Western president and chief executive Ken Karels says the acquisition will enhance Great Western's presence in Iowa.
Under the deal, each share of North Central common stock will be converted into the right to receive $30.58 per share, a 39-percent premium over the March 12 closing price.
The deal will bring Great Western up to 200 locations throughout Iowa, Nebraska, Arizona, Colorado, Kansas, Missouri and South Dakota. The company says that after the closing, it will have assets of about $8.9 billion and deposits of about $6.7 billion.