For years Security State Bank in Pearsall, Tex., ranked among the most profitable small banks in the country by sticking to a simple strategy: investing deposits primarily in securities while keeping its overhead low.

MIDWEST

Capital Corp. of the West's shares fell sharply Wednesday, a day after the Merced, Calif., company issued a profit warning for the third quarter.

The federal government’s new fiscal year is less than two weeks away, but the Agriculture Department has not decided whether to raise fees on a loan guarantee program popular with farmers and ranchers — and their lenders.

With its deal for Summit Bank Corp. of Atlanta, San Francisco's UCBH Holdings Inc. would gain a foothold in two more cities with fast-growing Asian-American communities - and perhaps accelerate its expansion plans in China.

Flagstar Bancorp Inc. of Troy, Mich., said it plans to expand its commercial real estate lending operations to 16 new states in West, Midwest, and South.

Industry Bancshares in Industry, Tex., is buying Community Bancorp Inc. of Bellville for $33 million in cash and stock.

Oneida Financial Corp. of Oneida, N.Y., has agreed to acquire the $61 million-asset Vernon Bank Corp. of Vernon, N.Y., for about $11.4 million.

American Savings Bank in Honolulu has reached an out-of-court settlement with a 91-year-old customer who said she was swindled out of $900,000 by a former employee of the bank.

Sterling Financial Corp.'s first deal to buy a California community banking company is a big move south for the Spokane company as it seeks stronger growth than it has found in its home markets.

Atlantic Southern Financial Group Inc. in Macon, Ga., said it plans to acquire the $73 million-asset First Community Bank of Georgia in Roberta for $18.3 million in stock.

WASHINGTON - Florida lawmakers have introduced a number of federal bills aimed at addressing high insurance costs, but they acknowledge it may take another Katrina-like disaster to trigger a governmental solution.

A. William Schenck, who resigned last month as Pennsylvania's secretary of banking, is starting a Pittsburgh bank that will cater to midsize businesses, professionals, and high-net-worth individuals.

Dearborn Bancorp Inc. in Michigan announced plans to purchase the $248 million-asset Fidelity Financial Corp. of Michigan for $70 million.

A former community banker running for Illinois treasurer has pledged to put more of the state's money in community banks - but he has also made a pledge not to take campaign contributions from banks.

The Office of the Comptroller of the Currency has hit Amcore Financial Inc. with a cease-and-desist order requiring the Rockford, Ill., company to strengthen its Bank Secrecy Act compliance.

Add Park National Corp. in Newark, Ohio, to the growing roster of Midwest banking companies buying their way into Florida.

For more information on this data, visit Novantas LLC and Market Rates Insight.

Willow Grove Bancorp Inc. in Wayne, Pa., said in a restatement of its fiscal fourth-quarter results that it earned about $1.5 million less than it initially reported.