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First National Bank In Starbuck Is Sold PDF Print E-mail
Pope County Tribune - Starbuck Times
Written by Chad Koenen - Starbuck Times New Editor   
Tuesday, 13 April 2010 14:20

Olson said the acquisition is a win-win for everybody involved.

bank_1stnat_250First National Bank in Starbuck may soon have a new owner-but don't expect to see any changes to the staff, name, and decorations at the longtime Starbuck-based bank.

According to First National Bank President Mark Olson, SKBHC Holdings LLC has recently applied with the Federal Reserve Bank to purchase First National Bank and its holdings. The purchase means First National Bank would essentially become a subsidiary of SKBHC Holdings, but customers will likely notice little or no change in the day-to-day operations at the bank. Olson said everything from the employees, including himself as bank president, to the name itself will remain the same even after the purchase of First National Bank by SKBHC Holdings.

"They're going to buy the bank, but nothing is going to change," said Olson.

The purchase has yet to be approved by the Federal Reserve Bank, but Olson estimated the likelihood of the acquisition being approved is as high as 90 percent. The final purchase will likely be approved sometime in the next 4-6 weeks. Rather than waiting to make the potential sale public until after the sale became final, Olson said the decision was made to let people know as soon as the application process began so customers of the bank and other area residents, could hear first hand from bank officials what was going to happen at the Starbuck-based bank.

"We made the announcement now because we didn't want people finding out from another source that the application had been made," he said.

Olson said the acquisition is a win-win for everybody involved. For customers the acquisition means the bank will continue to be run as a community bank like it has been in the past, and will not be turned into a branch bank. The purchase of First National Bank means customers could eventually enjoy a wider selection of products and services at the community bank, while still maintaining that hometown feel.

"Eventually we will be able to offer more products and services, while at the same time remaining a community bank and not a branch," he said.

For the bank, the holding company will provide extra financial support, as well as provide some extra support services for First National Bank that were not available in the past. With the acquisition, the hope is that First National Bank employees will spend less time concentrating on certain procedural and IT duties, and more time providing more products and services to their customers on a daily basis.

"This is a win-win for everybody," said Olson. "(SKBHC) gets the National Bank Charter which is what they want, and it's quicker and most likely less expensive to buy a small national bank rather than to start from scratch to acquire a National Bank Charter."

SKBHC Holdings LLC is a new company, which Olson said is run by a group of well-established bankers, and First National Bank is the first bank the group is attempting to purchase. With the National Bank Charter, Olson said SKBHC Holdings LLC will be able to purchase other banks and financial institutions nationwide, which he said is one of their reasons for purchasing First National Bank.

If the sale is not approved by the Federal Reserve Bank, Olson said business will continue to operate as usual at the bank. Olson said the bank has been financially strong and has been a staple in the Starbuck area for over 111 years, something that will not change even if the bank is owned by another company.

Olson said the bank employees are grateful for all of the support in the past, and look forward to continuing a partnership with Starbuck and the surrounding areas for years to come.

"First National Bank wants to thank everybody in Starbuck and the surrounding area for all of their support through our 111 year history," said Olson.