The South Dakota-based company that owns the Great Western Banks announced a plan today to purchase the parent company of First Federal Savings Bank of Iowa. First Federal’s main office is in Fort Dodge and there are ten other branch banks in Iowa. Great Western vice president of marketing, Toni Cranny, says the First Federal banks will eventually be converted over.

“We are merging both First Federal and Great Western bank together, and of course this is pending regulatory and shareholder approval. And the timing of it would be sometime this summer,” Cranny says. Great Western is paying $30.58 a share for the stock of First Federal, which it says is a 39% premium on the price.

Cranny says First Federal customers won’t notice any immediate changes. “At this point, it is business as usual, and we just look forward to the merger and the opportunity to serve them,” Cranny says.

Cranny says First Federal has 140 to 150 employees and at this point they will be absorbed into the new company. Great Western currently has 50 branches in Iowa.

First Federal has branches in Ames, Ankeny, Burlington, Clive, Fort Dodge, Mount Pleasant, Nevada, Perry, West Des Moines.