Newspaper article THE JOURNAL RECORD

Bancfirst Buys Finance-Troubled Tahlequah Bank

Newspaper article THE JOURNAL RECORD

Bancfirst Buys Finance-Troubled Tahlequah Bank

Article excerpt

being bought by Oklahoma City-based BancFirst for a "token consideration," said David Rainbolt, chief financial officer for BancFirst.

"We're assuming liabilities that exceed their capital, so that has to be factored in as part of the purchase price," Rainbolt said. "The bank is a problem bank and we don't expect there to be significant capital remaining at the time of acquisition."

BancFirst executives' internal debate centered around whether to buy the bank now or wait a few months until it was closed by the Oklahoma Banking Commissioner and offered for sale by the Federal Deposit Insurance Corp., he said.

"We were just at a point where we decided that we were comfortable with our own internal analysis that we could go ahead and make an offer now," Rainbolt said.

H.E. Rainbolt, chairman of the board of BancFirst, has a 26 percent interest in Liberty State's holding company, which is selling the bank's assets to BancFirst. Applications to buy the bank were filed Tuesday with the Oklahoma Banking Department and the Federal Reserve Bank of Kansas City.

Liberty State had assets of $42 million at March 31. For Dec. 31, the latest date available for other statistics, Liberty State had assets of $43 million and primary capital of $1.37 million, or 3.19 percent of assets.

"It has very little capital, so the liabilities are about equal to the assets," Rainbolt said.

Primary capital included the bank's reserve for loan losses. Non-performing loans were $2.4 million at Dec. 31, or 8.2 percent of $28.8 million in total loans.

The loans that played the largest in role in Liberty State's problems were a few loans, made by prior management to clients outside of Tahlequah's territory of Cherokee County, that ranged in original size from $200,000 to $1 million, Rainbolt said. …

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