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Archive for Friday, January 9, 2009

Landmark to acquire CornerBank branch, deposits

January 9, 2009

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Landmark National Bank is preparing to take over CornerBank’s deposits and branch location in Lawrence, the banks announced Friday afternoon.

Landmark is acquiring the CornerBank branch at 4621 W. Sixth, plus about $9 million in deposits, said Jana Dobbs, CornerBank’s community bank president in Lawrence. She expects the deal to close in April or May.

CornerBank will retain about $16 million in loan business in Lawrence, as it relocates to a smaller location in town, Dobbs said.

The pending sale comes after CornerBank — a $240 million banking company with branches in southeast and northeast Kansas — entered into an agreement last year with the Comptroller of the Currency, requiring the bank to undertake several measures to improve the bank’s capitalization.

Selling the branch to Landmark will allow CornerBank to remain active in the Lawrence business community, while operating under a less-expensive business model, said Bruce Schwyhart, CornerBank president and chief executive officer.

“Like many companies, we are adjusting our business model to be more in line with the recent economic downturn,” Schwyhart said. “Since we have built our business in the Lawrence market on commercial real estate and the housing market, it is appropriate that we reduce our overhead costs to ensure our continued profitability.”

Dobbs said the Winfield-based bank turned a profit of $1.36 million in 2008, but still needed to make changes to meet conditions outlined by regulators.

“We need to pull back a little bit, to allow the economy to rebound,” Dobbs said. “This is just like a family tightening their belt during difficult economic times.”

Landmark, meanwhile, long had planned to expand into northwest Lawrence, and had purchased a lot at the southwest corner of Sixth Street and Folks Road for a new branch. Now that Landmark will be getting an existing branch nearby, the bank plans to sell the lot.

For customers with deposits at CornerBank, the transition to Landmark will be expected to occur during a weekend: CornerBank would close the branch on a Friday or Saturday, and Landmark would open it back up the next Monday morning.

“We are pleased to be able to purchase the CornerBank facility and look forward to serving the clientele of this branch,” said Pat Alexander, president and chief executive officer of Landmark, which is based in Manhattan. “The availability of the CornerBank building will allow us to move forward with our expansion plans more quickly and economically than new construction.”

CornerBank currently has six full-time employees and five part-time employees. Some will stay with Landmark once the sale closes, Dobbs said, while others will remain with CornerBank in its new location.

CornerBank did not disclose where its new branch would be located.

Comments

Michael Capra 5 years, 11 months ago

bull crap they are tits up kudos to land mark

Godot 5 years, 11 months ago

I saw a list of banks that FDIC considers "safe," as of June 2008. There were only two Lawrence banks on that list, and Cornerbank wasn't one of them.

Godot 5 years, 11 months ago

My question is, did FDIC force this acquisition, and was there any TARP or Federal Reserve funding involved?

SeaFox 5 years, 11 months ago

Godot:I am also interested in a link to this list, although I'm sure my bank is one of them.

douglascounty 5 years, 11 months ago

The more I read about banks struggling, the happier I am to be with KU Credit Union. They are actually expanding!

Godot 5 years, 11 months ago

Here you go. Caveats: this is a private analysis I found on another forum. It was compiled from several sources. I do not know the validity of the information. The "troubled" list data is as of 9/30/08. The "safer" list is even older, from 3/31/08. Lots of bad juju has gone down since then, so the financial condition of all these banks has likely changed massively.These are not professional sites, yet they have gotten lots of hits lately, so you may find them unavailable due to data transfer limits.At the minimum, you can use these lists as roadmaps for where and how to conduct your own due diligence.Troubled: http://www.geocities.com/tubeguy@rogers.....Safer (AL to MS): http://www.geocities.com/tubeguy@rogers.....Safer (MT to WY): http://www.geocities.com/tubeguy@rogers.....

chzypoof1 5 years, 11 months ago

Acutally Landmark was never in a merger talk with Emprise. It was Emprise that was talking with Corner Bank about merging.

Godot 5 years, 11 months ago

Note on the list of banks: they are not listed by location of branch, only by location of home office.

craigers 5 years, 11 months ago

Cheeseburger what's your beef with Pat Alexander?? I just read what I wrote and I didn't intend the pun. :)

craigers 5 years, 11 months ago

Sorry, the reason I ask is that I know Pat and he is a very good business man that obviously knows what he is doing if he continues to grow Landmark and remain profitable during rough times in the economy like these.

Godot 5 years, 11 months ago

Here's another useful link. Of the 28 banks that have failed in the last year, all were on the Texas Ratio High Risk list:http://www.click2map.com/maps/kwaldman/High_Risk_(Texas_Ratio)_Banks

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