Newspaper article THE JOURNAL RECORD

Holding Company Approved by Fed / to Consolidate Seven Banks

Newspaper article THE JOURNAL RECORD

Holding Company Approved by Fed / to Consolidate Seven Banks

Article excerpt

consolidation of seven banks under a new bank holding company entitled United Community Corp. of Shawnee, Executive Vice-President David Rainbolt said Monday.

The firm intends to complete the consolidation by July 1, Rainbolt said. According to December, 1984, financial statements, United Community will then claim an asset base exceeding $566 million.

"What we wanted to do is close in mid-June," he explained. "Then we figured out that closing at a later date corresponding to the fiscal end, it worked out better than before 14 days before the end of the year."

If completed, United Community will stand as the fourth largest holding company in the state, he said. It would rank second in the state in the number of banks under one holding company, behind the 11-bank BancOklahoma Corp. of Tulsa.

The seven banks to consolidate under United Community include Federal National in Shawnee, First National Bank and Trust Co. of Stillwater, First National Bank in Guthrie, Oklahoma State Bank in Konowa, First Bank and Trust Co. in Sand Springs, First National Bank in Seminole, and American Bank of Commerce in McAlester.

Under the current plan, United Community will hold 90 percent of stock in Oklahoma State Bank, Rainbolt said. In the six remaining banks it will control 99 percent to 100 percent of stock.

The firm will also control 10 percent of stock in Liberty State Bank in Tahlequah and 12 percent of stock in Wilburton State Bank, he added.

"Our goals were two-fold," he said. "First was to realize some economic scale and provide services through our banks that otherwise could not be provided through any one individual bank.

"Our second reason was to create a group of banks with a common identity/county seat/community bank theme, outside the two metropolitan areas," he said. …

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