Ind. Bank Company To Buy Converted S&L
Community Bancshares of Indiana Inc. has agreed to buy NCF Bank and Trust of Bardstown, Ky., for about $15.3 million in stock.
New Albany-based Community Bancshares, with $263 million of assets, has offered NCF shareholders 0.935 of a share of its stock for each NCF share. The deal, at 1.33-times book value, is expected to close by April 6.
Community Bancshares operates two banks in southern Indiana, Community Bank of New Albany and Heritage Bank of Jeffersonville. Under terms of the agreement, NCF would retain its name and its staff, except for chairman and president A.E. Bowling, who is retiring.
NCF, with $36 million of assets, went public in April after converting from a savings and loan to a commercial bank. Dan R. Biggs, vice president at NCF, said the public offering left the bank and its holding company, NCF Financial Corp., "significantly overcapitalized." It has $12 million of capital, he said.
"We thought a larger bank could better use that capital because it would take us a lot of years to grow into that capital," said Mr. Biggs, who is expected to take over for Mr. Bowling.
BancFirst Unveils Deal For Small Okla. Bank
BancFirst Corp., Oklahoma City, has agreed to acquire Security Bank and Trust, Lawton, Okla., for an undisclosed sum.
The deal is expected to close in the second quarter.
"Security is a well-run bank with great asset quality," said BancFirst chief executive officer David E. Rainbolt. "Moreover, Lawton is a community that an Oklahoma-based bank like BancFirst considers a prime market."
The announcement came after BancFirst's agreement to buy 10 rural Oklahoma branches from North Carolina's NationsBank Corp. That deal, valued at $158.5 million, is expected to close in March.
L.A.'s Hanmi in Deal For a Mortgage Lender
Hanmi Bank of Los Angeles announced last week that it's buying First Global Bank, Los Angeles, for $7.6 million in cash.
The deal-at 1.5 times First Global's book value and expected to close in early 1998-would extend Hanmi's reach into southeastern Los Angeles County and boost its branch network from six to nine.
More important, said senior loan officer Jack Choi, it would allow Hanmi to make mortgage loans.
Hanmi, with $465 million of assets, specializes in business lending; $77 million-asset First Global's niche is mortgage lending.
"Our customers need consumer financing too," said Mr. Choi, but Hanmi did not but want to build a mortgage lending unit from scratch, he said, "because it covers a lot of regulation."-Alan Kline
Iowa Banking Firm Charters a New Unit
An Oskaloosa, Iowa, banking company has opened a newly chartered bank in nearby Pella.
Mahaska Investment Co., a $256 million-asset holding company, opened Pella State Bank this month. Pella State was capitalized with $5 million of stock from the holding company.
Mahaska chartered the bank instead of simply branching into Pella from one of its other two banks because Iowa law prohibits branching into a community where a locally chartered bank exists. Since Marion County State Bank is headquartered in Pella, Mahaska's hand was forced, according to David A. Meinert, chief financial officer.
Mr. Meinert said Mahaska expects to serve strong loan demand in Pella, a rapidly growing community. "Pella is one of the most attractive communities in southeastern Iowa," he said.- Laura Pavlenko Lutton