Centier bank buys Lowell thrift's assets
Item
Title
Centier bank buys Lowell thrift's assets
Creator
Post-Tribune
Date
February 8, 1992
Identifier
SN.02.807
Subject
General, Michael Schrage, First Commerce Bank
Original Format
newspaper
Text
Centier bank buys Lowell thrift's assets
By Karen Sneliing
LOWELL- Centier Bank Friday announced it has acquired the assets of the failed First Commerce Bank which was seized last summer by federal thrift regulators.
Centier, formerly First Bank of Whiting, took over the now defunct savings and loan's $5.5 million deposits and $3 million in loans at 6 p.m. Centier would not disclose the amount of the winning bid.
Centier will continue to serve customers in the former First Commerce building at 155 Mill St. through March 7.
After the transition period, all customer business and accounts will be handled at Centier's Lowell branch at 1914 E. Commercial Ave. The operations will be as a bank, rather than a thrift.
"We've been serving the Lowell community since 1982 and this acquisition gives us the opportunity to expand our commitment," said Michael Schrage, Centier president and chief executive officer.
Schrage said the bank, under the term of its bid, did not acquire any of First Commerce's problems. Those loans and First Commerce's furniture and other fixtures will be sold by the federal government through a separate bid process.
First Commerce was placed under the control of the Resolution Trust Corp. (RTC) June 14, 1991, after incurring losses of more than $850,000 during a three-year period.
The savings institution was owned by First Commerce Corp., an Indianapolis holding company, and had $10.9 million in assets when it was seized.
The thrift was the first in Northwest Indiana and the fourth statewide to slip into insolvency since the RTC was created in 1989.
Eight financial institutions had expressed interest in First Commerce, according to RTC officials, but Centier was one of four to actually submit a bid for the thrift's asset by the RTC's Jan. 28 deadline.
The Whiting bank learned it was the successful bidder about 10 days ago, but was prohibited by RTC from announcing the acquisition until this weekend, Schrage said.
Schrage said the bank's bid may have been accepted, in part, because of Centier' s existing office in Lowell and because acquisition would not require the bank to incur major costs.
Under the terms of the acquisition, Centier acquired the savings accounts of about 1,600 former First Commerce depositors valued at $5.5 million. Those accounts will be added the $14 million in deposits Centier has at its Lowell office.
Schrage said Centier's new customers will be able to take advantage of a wide range of services First Commerce did not offer.
“We see this as a great opportunity to introduce ourselves to more than 1,000 depositors," said Shrage.
"We're a moderate size bank that now gives more than 1,000 new depositors increased staff and services," added Schrage, whose bank is the sixth-largest bank in Northwest Indiana.
It employs about 250 people and operates 14 branches in Lake and Porter counties. Centier has assets totaling more than $334 million.
Schrage said seven full-time and part-time workers who had been employed by First Commerce will temporarily join Centier's payroll.
Schrage said the bank will decide whether to permanently employ the seven based upon Centier's personnel needs and the workers' career goals.
Centier is an independent, family-owned institution. Schrage said the bank has no plans to acquire any other institutions.
By Karen Sneliing
LOWELL- Centier Bank Friday announced it has acquired the assets of the failed First Commerce Bank which was seized last summer by federal thrift regulators.
Centier, formerly First Bank of Whiting, took over the now defunct savings and loan's $5.5 million deposits and $3 million in loans at 6 p.m. Centier would not disclose the amount of the winning bid.
Centier will continue to serve customers in the former First Commerce building at 155 Mill St. through March 7.
After the transition period, all customer business and accounts will be handled at Centier's Lowell branch at 1914 E. Commercial Ave. The operations will be as a bank, rather than a thrift.
"We've been serving the Lowell community since 1982 and this acquisition gives us the opportunity to expand our commitment," said Michael Schrage, Centier president and chief executive officer.
Schrage said the bank, under the term of its bid, did not acquire any of First Commerce's problems. Those loans and First Commerce's furniture and other fixtures will be sold by the federal government through a separate bid process.
First Commerce was placed under the control of the Resolution Trust Corp. (RTC) June 14, 1991, after incurring losses of more than $850,000 during a three-year period.
The savings institution was owned by First Commerce Corp., an Indianapolis holding company, and had $10.9 million in assets when it was seized.
The thrift was the first in Northwest Indiana and the fourth statewide to slip into insolvency since the RTC was created in 1989.
Eight financial institutions had expressed interest in First Commerce, according to RTC officials, but Centier was one of four to actually submit a bid for the thrift's asset by the RTC's Jan. 28 deadline.
The Whiting bank learned it was the successful bidder about 10 days ago, but was prohibited by RTC from announcing the acquisition until this weekend, Schrage said.
Schrage said the bank's bid may have been accepted, in part, because of Centier' s existing office in Lowell and because acquisition would not require the bank to incur major costs.
Under the terms of the acquisition, Centier acquired the savings accounts of about 1,600 former First Commerce depositors valued at $5.5 million. Those accounts will be added the $14 million in deposits Centier has at its Lowell office.
Schrage said Centier's new customers will be able to take advantage of a wide range of services First Commerce did not offer.
“We see this as a great opportunity to introduce ourselves to more than 1,000 depositors," said Shrage.
"We're a moderate size bank that now gives more than 1,000 new depositors increased staff and services," added Schrage, whose bank is the sixth-largest bank in Northwest Indiana.
It employs about 250 people and operates 14 branches in Lake and Porter counties. Centier has assets totaling more than $334 million.
Schrage said seven full-time and part-time workers who had been employed by First Commerce will temporarily join Centier's payroll.
Schrage said the bank will decide whether to permanently employ the seven based upon Centier's personnel needs and the workers' career goals.
Centier is an independent, family-owned institution. Schrage said the bank has no plans to acquire any other institutions.