Missouri holding co. acquires bank

Northwestern Financial Review, Apr 1-Apr 14, 2005

Exchange National Bancshares, Jefferson City, Mo., announced it plans to acquire Bank 10 in Belton. A multi-bank holding company, Exchange is the parent company of the Exchange National Bank of Jefferson City, Citizens Union State Bank & Trust of Clinton, and Osage Valley Bank of Warsaw.

James E. Smith, chairman of Exchange, said he was delighted to be expanding into some of the fastest growing areas surrounding Kansas City. "The double bonus in the transaction for us is to join with the outstanding board, officers and employees of Bank 10." Purchase price for Bank 10 is reported to be $32 million.

Joe Balentine, Bank 10's CEO, said he hadn't purposefully placed the bank on the market; last fall, however, he did tell the board of Exchange that if they were interested he might be willing to listen. "In deference to our employees and customers, I wanted to affiliate with an out-of-market community banking group that would be interested in our organization and not just our customers," Balentine said.

Balentine added that he wouldn't sell to an organization that did not have a compatible culture and philosophy as the one he'd developed at Bank 10.

Chartered in 1910, Bank 10 experienced a growth spurt over the last five years, nearly doubling its assets to $172 million in 2004 up from $98 million at the end of 1999.

When the transaction is complete, the acquisition will bring the total assets of Exchange National Bancshares to approximately $1.1 billion with 17 banking locations in central and western Missouri. Regulatory approval is pending.

Smith said that Exchange's plans were for Bank 10 to continue to operate as an independent entity under its own name with Balentine as CEO.