A judge in Nebraska has sided with the Nebraska Department of Banking and Finance, blocking the purchase of Premier Bank in Omaha by GreenState Credit Union in North Liberty, Iowa.
The $7.9 billion GreenState Credit Union agreed in October to buy the $369 million. The state regulator denied GreenState’s application earlier this year, stating that Premier failed to provide supporting evidence backing the deal’s legality.
The regulator determined that GreenState failed to qualify as a “financial institution” that could pursue cross-industry transactions in Nebraska.
Premier had appealed the decision, arguing that one of the powers of federally chartered banks doing business in Nebraska is the authority to sell substantially all of its assets and liabilities to a credit union. The state-chartered bank asserted that it has the same right.
Lancaster County District Court Judge Ryan Post ruled that the proposed acquisition wasn’t authorized under a wildcard statute that lets state banks have the same powers as national banks. Post said the statute has no specific power allowing for the sale or purchase of bank assets.