Sunday, August 31, 1997

Federal Land Bank merger effective on Sept. 1

By J.T. Smith / Abilene Reporter-News

Four Abilene area ag lenders will be merged when business resumes after the Labor Day break.

The merger of the Federal Land Bank Associations of Brownwood, Coleman, Haskell and San Angelo will become effective Monday.

The main office will be located in Coleman, while the other three locations will become full-service branch offices.

Stockholders of all four FLBAs approved the merger. The new FLBA also was approved by the Farm Credit Administration, which is the regulatory agency for the Federal Land Bank.

Merged associations will serve Baylor, Brown, Callahan, Coke, Coleman, Comanche, Haskell, Irion, Jones, Knox, Mills, Reagan, Runnels, Sterling and Tom Green counties.

Loan volume will be about $136 million with 2,200 loans outstanding to area farmers, ranchers, rural home owners and agribusinesses.

As part of the merger, $2,967,000 will be returned to borrowers as reduction in required stock. All existing loans, as well as new loans made in the future, will have stock equal to 2 percent of the original loan balance rather than 5 percent as has been required in the past.

This stock reduction will lower the effective rate of loans to FLBA borrowers.

Isenhower will become CEO of new FLBA

James Isenhower, former president of the FLBA of Coleman, will be chief executive officer of the new association and will remain in the Coleman office.

Scott Ogden also will stay in the Coleman office as vice president. Herbert Loeffler, former president of the FLBA of Brownwood, will serve as president of the new Brownwood branch.

Brian Meeks, former president of the FLBA in San Angelo, will be president of the San Angelo branch. Dale Bullinger, well known to Abilene area farmers as president of the Haskell FLBA, will be president of the Haskell branch, and Craig McCormick will remain in Haskell as vice president.

The board will be comprised of two board members from each of the four merging associations, with a ninth member to be appointed by the board. Board members are: Chris West, Baird; Bruce Williams, Baird; Andrew Lange, Rowena; Paul Jansa, Ballinger; Donald Johnson, Brownwood; Jerry Wayne Richardson, Brownwood; Lavon Beakley, Rule; and Macky Spurgin of Anson.

senhower said benefits of the merger include a larger geographical territory with more diversity in the loan portfolio. This will allow better management of credit risks and adversity in a particular area.

The merger also will mean a larger and stronger capital base that will let more benefits be passed on to FLBA borrowers.

Isenhower said the merger also centralizes some operations to free up time for other employees to work with customers while also reducing operating costs.

"Borrowers served by each of the four office locations will continue to deal with the same personnel as before in conducting their business," Bullinger added.

Bob Petty is Texas Angus vice president

Robert R. (Bob) Petty, Jr., of the RR Ranch in Nolan is now vice president of the Texas Angus Association.

He has also made national news with his famed Angus herd.

In July's American Angus Association Spring National Sire Evaluation Report, Petty's RR Ranch and Richmond Hale of Canyon tied with seven bulls each listed. This led any active Texas Angus breeders.

Petty already is getting prepared for the 28th Annual "Buyers' Advantage" Angus Bull Sale at 1 p.m. Nov. 11 at the ranch headquarters at Nolan.

Petty will offer 75 head, with 22 low-risk calving bulls and 53 balanced performance bulls -- all 17 to 23 months old. All the good bulls were weaned in 1996, with no early sales.

For more, call Bob at (800) 734-2443. From Abilene, Nolan is a local number, (915) 798-3467.