Magazine article American Banker

Hawkeye Finds Buyers for Three of Its Iowa Banks

Magazine article American Banker

Hawkeye Finds Buyers for Three of Its Iowa Banks

Article excerpt

Hawkeye Finds Buyers for Three Of Its Iowa Banks

A month and a half after casting its line, Hawkeye Bancorp. has hooked buyers for two of its banks.

The Security Savings Bank, Marshalltown, Iowa, on Wednesday announced its purchase of Hawkeye Bank and Trust, Eldora, and last week Clinton National Bank released details on its contract to buy Hawkeye Bank and Trust, Camanche.

No purchase prices were released for either bank, and no change of control applications have been filed with regulators.

Robert Murray, the executive vice president of Hawkeye Bancorp., commented, "I am pleased by the interest in the banks evidenced by the two sales.'

Although he would not reveal exact figures, Mr. Murray did say that his announced goal had been to sell the banks at their "underlying book value' and that "at this point, we are accomplishing our goal.'

In addition to the two announced purchases, Charles Cebuhar of Des Moines has signed a letter of intent to purchase Hawkeye State Bank, Iowa City. Mr. Cebuhar is the former owner of the United State Bank, Cedar Rapids, which is now a Hawkeye affiliate.

The Des Moines-based Hawkeye Bancorp., which had a loss of $36.9 million in 1985, announced last month that it would sell 17 of its 36 banks as part of an accord with its lenders.

The plan, still being negotiated, also would give the creditors 2.6 million common shares of the parent company. Hawkeye has been in default on about $100 million worth of short- and long-term debt since late last year.

Ronald Fenton, the president of Security Savings, said his bank will acquire "substantially' all of the Eldora bank's $16. …

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