Newspaper article THE JOURNAL RECORD

Banks of Mid-America Back in Sound Condition

Newspaper article THE JOURNAL RECORD

Banks of Mid-America Back in Sound Condition

Article excerpt

Of the 12 Texas or Oklahoma-based bank holding companies with more than $1 billion in assets in 1984, only a trio were remaining in June, when Banks of Mid-America Inc., Oklahoma City, announced its recapitalization plan.

The rest of the dozen had either requested and received federal assistance to stay afloat or had merged with an out-of-state bank.

By Friday, when the recapitalization plan was completed, the trio was down to a duo, and Banks of Mid-America became the only bank holding company in the Southwest that had successfully completed a recapitalization plan using private capital.

"Being able to complete this is a plus," said James W. Bruce Jr., executive vice president, chief financial officer and administrative officer for Banks of Mid-America.

"It certainly puts us in a position of having the largest capital structure of financial institutions in the state of Oklahoma, and one that has been accomplished by private means. We think we'll be uniquely positioned to provide the kind of financial position that the state needs to revitalize its economic situation," Bruce said.

"Completion is proof we've got a lot of investors believing in us."

The holding company has no preferred stock, a result of the recapitalization plan's exchange of three levels of preferred debt for common shares, and has $3.8 million in senior debt, after settlement of $42.1 million senior debt at less than face value.

"I think it (completion of the plan) will cause the public to see the company as a much stronger financial alternative, and as a result of that, I think businesses will come to the company because people see it as a strong, sound institution," said Frank X. Henke III, chairman and chief executive officer of Banks of Mid-America.

"It is a real vote of confidence from the investors within the state, as an expression of interest for their bank to have a real strong bank holding company to assist in economic development of the state, and an indication of confidence of the out-of-state investors that they see an improvement of the state, as providing attractive future returns," Henke said.

"We will be, of course, expanding our business in traditional ways as it relates to marketing, and expand our loans and deposits from those efforts," Henke said.

"We would also be in a position to consider acquiring failed or failing banks, and we would also be in a position to consider acquiring good quality banks if they were available," Henke said.

"Oil and gas is a basic industry to the state of Oklahoma, which is our primary market. …

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