AROUND THE Region

TierOne Bank, Lincoln, Neb., has been awarded $4.5 million in damages in connection with a lawsuit filed in 1995 claiming the federal government breached its contract with the bank upon the enactment of the Financial Institutions Reform, Recovery and Enforcement Act of 1989.

The lawsuit stemmed from FIRREA's elimination of nearly $30 million of goodwill remaining from three supervisory mergers completed in 1982. The loss of the goodwill, which had been included as part of the bank's regulatory capital requirements under federally approved guidelines at the time of the supervisory mergers, forced TierOne to shrink in size, reduce personnel and eliminate several banking offices in order to meet FIRREAs new, stricter capital requirements.

The case was initially stayed pending resolution on appeal of a series of similar cases filed in the mid-1990s. In July 1996, the U.S. Supreme Court ruled in the Winstar case that FIRREA's provisions changing the accounting for supervisory goodwill constituted a breach of contract by the federal government.

In late 2003, the Court of Federal Claims found the federal government was liable to TierOne for breach of contract. In May 2006 a second trial, based solely on the issue of damages resulting from the contract breach, found the bank was entitled to $4.5 million.

Gilbert G. Lundstrom, chairman and CEO of the parent company, TierOne Corp., said the bank is currently reviewing the opinion and both the bank and the federal government retain the right to appeal the ruling to the U.S. Court of Appeals. Lundstrom said the bank has made no decision whether to appeal the case.

Northern Trust Corp., Chicago, has announced an 8.7 percent increase in its quarterly cash dividend. The dividend is being increased from 23 cents to 25 cents per share. The new dividend rate is payable Jan. 2, 2007, to shareholders of record Dec. 8.

The Northern Trust board of directors has also increased the common stock buyback authorization by approximately 11 million shares, thus allowing the future purchase of up to an aggregate of 12 million shares of the corporation's common stock. Since authorization under the buy-back program was last increased to 12 million shares in mid-2003, Northern Trust Corp. has repurchased approximately 11 million shares.

Capitol Federal Financial, Topeka, has announced its board of directors has declared a special yearend cash dividend of 9 cents per share. This special dividend is the result of the board's commitment announced in January 2005 to distribute to stockholders 25 percent of the annual net income in excess of the total amount of dividends paid in the four regular quarterly dividends during the just-completed fiscal year.

The special dividend was payable Dec. 1 to stockholders of record Nov. 17.

Directors Of Commerce Banc-shares Inc., Kansas City, have approved a 5 percent stock dividend. Certificates are to be distributed on Dec. 13 to shareholders of record Nov. 29. Cash will be paid for fractional shares.

The Commerce board of directors has also declared a regular quarterly dividend of 24.5 cents per share, also payable Dec. 13 to stockholders of record Nov. 29. The dividend will not be payable on the shares issued in the 5 percent stock dividend.

HF Financial Corp., Sioux Falls, S.D., has announced a quarterly cash dividend of 10.5 cents per share for the first quarter of the 2007 fiscal year. This is up from 10.25 cents per share.

The dividend was paid Nov. 15 to stockholders of record Nov. 8.

Heartland Financial USA Inc., Dubuque, Iowa, has announced an agreement with ALD Automotive, a wholly owned subsidiary of Societe Generale Group, to sell its fleet leasing company, ULTEA, to the French company in a cash transaction. The transaction was scheduled to close on or about Oct. 31.

The deal comes after a strategic review by Heartland of its operating subsidiaries, including each entity's projected profit contribution and compatibility with the company's core businesses.

Heardand Financial USA Chairman. President and CEO Lynn B. Fuller commented, "This transaction represents Heartland's commitment to focus its resources on its core banking and consumer finance businesses. It's another step in our plan to maximize shareholder value by divesting non-strategic holdings."

With the deal, ALD Automotive, a subsidiary of one of Europe's largest financial services groups, will acquire all ULTEA assets, amounting to $51.1 million as of Sept. 30, 2006. Additionally, ALD Automotive will offer employment to all of ULTEA's current employees. Currently, ULTEA employs 15 individuals from its Madison, Wis.-based home office.

"The sale accomplishes several important goals for Heartland. It will allow us to redeploy Heartland's resources for the benefit of our shareholders and will enable us to concentrate on our core banking and consumer finance businesses," said Fuller.

Directors of NASB Financial Inc., Grandview, Mo., have approved a $4 million buy-back of shares of the company's common stock.

NASB is the parent company of North American Savings Bank, Grandview.

First Federal Banohares of Arkansas Inc.. Harrison, has completed its previously announced stock repurchase. The action consisted of a repurchase of 248,316 of the outstanding shares.

The shares will be reflected as treasury shares and will be available for general corporate purposes.

The First Federal board of directors has also authorized the repurchase of up to 245,197 shares, or approximately 5 percent of the outstanding common stock.

Expansion in the Kansas City market DV PrivateBancorp Inc., Chicago, is planned through an agreement with a group of experienced commercial bankers led by Calvin Kleinmann to aeate a de novo federal savings bank based in Kansas City.

Kleinmann, former executive vice president and head of private banking at the former Gold Bank, Leawood, Kan., will be chairman and CEO of The PrivateBank-Kansas City. Sherman Titens, former director of marketing for Gold Bane Corp. Inc., will be managing director and chief marketing officer, and Paul Clendening, former president and a founder of First Commercial Bank, Overland Park, Kan., will be president and chief operating officer.

While waiting for the regulatory approvals for the de novo bank, PrivateBancorp will open a loan production office in Kansas City. The PrivateBank-Kansas City, will be located in the Plaza area and plans call for an additional office in the Johnson County (Kan.) market.

QCR Holdings Inc., Moline, Ill., has entered into an agreement to add a Wisconsin-chartered bank to its community bank family. Under terms of its agreement with Security Bank Shares Inc., Iron River, Wis. and Ridgeland Bancorp Inc., Tony, Wis., QCR will acquire from Ridgeland ownership of Farmers State, Ridgeland. After that acquisition, QCR will transfer the Pcwaukcc (Wis.) branch of its Rockford Bank and Trust Co. subsidiary to Farmers State. Farmers State offices in Ridgeland Dallas, Wis., will be sold to Security Bank, New Auburn, Wis., banking subsidiary of Security Bank Shares.

The transactions are expected to close in the 2007 first quarter.

Old National Bancorp, Evansville, Ind., has announced a definitive agreement to acquire St. Joseph Capital Corp. of Mishawaka, Ind. St. Joseph Capital Corp., with some $500 million in assets, is the parent company for St. Joseph Capital Bank.

Old National has branches in Southern Illinois.

Northern Star financial Inc., Mankato, Minn., has entered into a letter of intent with AP Holdings LLC that provides for the sale of up to a 49 percent interest in the Northern Star for $3.5 million.

The company also announced it has entered into a separate letter of intent providing for the sale of its St. Cloud (Minn.) Brandi to Bank Vista of Sartell, Minn.

"The agreements will strengthen our balance sheet and corporate structure and position us to continue the growth and business development of our bank in Mankato" said Tom Stienessen, CEO of Northern Star Financial.

Olney (Tex.) Bancshares Inc. has announced plans to acquire InterBank, Elk City, Okla. The acquisition will give Olney $600 million in assets in Oklahoma and will bring its total assets to more than $1.1 billion.

Pony Express Bancorp, Elwood, Kan., has purchased the Bank of Paxton, Neb., from Beveridge Bancshares.

Pony Express Bancorp is the parent company for Pony Express Community Bank, St. Joseph, Mo.

Applications for prior approvals have been filed for the following actions:

* Charter Bankshares Inc., Eau Claire, Wis., to become a bank holding company by acquiring at least 90 percent of Charter Bank Eau Claire.

* Frandsen Financial Corp., Forest Lake, Minn., to merge with Pine Bankshares Inc., Pine City, Minn., and indirectly acquire First National of Pine City.

* Heywood Bancshares Inc., Northfield, Minn., to become a bank holding company by acquiring 100 percent of First National of Northfield.

* Cabool (Mo.) State Bank Employee Stock Ownership Plan to become a bank holding company by acquiring 25.45 percent of Cabool Bancshares Inc.

* Petefish, Skiles Bancshares Inc., Virginia, Ill., to acquire 100 percent of the voting shares of Chandlerville (Ill.) Bancshares Inc. and indirectly acquire Peoples State of Chandlerville.

* DeWitt (Ark.) First Bankshares Corp. to acquire 100 percent of First National of Stuttgart, Ark.

* United Bancorp., Osseo, Wis., to merge with Midwest Bancorp., Billings, Mont.

In Colorado, charter application has been filed for the proposed Larimer Commerce Bank, Fort Collins. The bank would be an affiliate of Capitol Bancorp Ltd., Lansing, Mich.

Joseph Reid will serve as chairman and Mark Kross as president.

Among the directors for the proposed bank is Gerard Nalezny, CEO of Fort Collins Commerece Bank, also an affiliate of Capitol Bancorp. Kross has served as president of Fort Collins Commerce Bank.

Charter application has been filed for the proposed Solera Bank, Lakewood, Colo. The bank will be an affiliate of Solera National Bancorp Inc. The holding company had withdrawn an earlier charter proposal.

Mark Martinez will serve as president and senior lending officer. James Perez Foster is proposed chairman and Robert Fenton is proposed chief operating officer and chief financial officer.

The company said the bank would have its headquarters in Lakewood and a branch in Denver.

In Texas, charter application has been filed for the proposed First Private Bank of Texas. The bank is planned for 8201 Preston Road, Ste. 200 in Dallas.

Capitalization will be $15 million.

Dan Chapman, formerly with Tolleson Wealth Management, will be chairman. Daryl Kirkham, most recently president and CEO of Tolleson Private Bank, Dallas, will be president and CEO.

Other organizing directors are Jim Erwin, managing partner of Erwin Graves and Associates L.P.; Raleigh Hortenstine, retired banker and currently pursuing ranching and private investments; and Ana Rodriguez, a bank regulatory consultant.

Charter application has been filed for the proposed Business Bank of Texas. The bank would be at 1910 W. Braker Lane, Austin.

Spokesperson is Edward L. Lette, Spring Branch, Texas.

Heartland Financial USA Inc., Dubuque, Iowa, has opened a de novo bank in Broomfield, Colo. Summit Bank & Trust's Broomficld office is the first of four locations planned to serve Broomfield and the Northern Front Range area in Colorado.

The new bank is led by John P. Carmichael, who has 21 years of experience as bank president, private banking manager and business banker in the Denver area. Founding directors include Carmichael, James R. Hill, Lynn B. Fuller, Randall Hall, Michael Griffith, Leonard P. Ponte and W. Scott Reichenberg.

Charter approval has been granted for the proposed First Associations Bank. The bank will be at 12001 North Central Expressway, Ste. 1165, Dallas.

Mercantile Bancorp Inc., Quincy, Ill., has completed the previously announced consolidation of three of its Illinois-chartered banks into a single entity. State Bank of Augusta and Security State of Hamilton have been merged into Marine Bank & Trust, Carthage.

President and CEO Dan S. Dugan said, "By the completion of these mergers, we have reduced the number of Illinois-chartered institutions from six to three. Clearly, there should be savings realized from reductions in statutory fees, paperwork and legal expenses and other sources. We will also be a more nimble organization able to better cope with changes in the banking environment. Both our customers and our shareholders should benefit from these changes."

Princeton (Ill.) National Bancorp Inc., parent company of Citizens First National, also in Princeton, has announced Citizens has signed a definitive agreement to purchase the Plainfield (Ill.) office of HomeStar Bank, Manteno, Ill. Citizens will be purchasing the existing facility plus approximately $11 million in deposits and $15 million in loans. The transaction is expected to close in the 2007 first quarter.

Nebraska Bankers' Bank N.A., Lincoln, has filed to convert to a state charter.

Merger applications have been filed for the following actions:

* Lakeside State of Oologah, Okla., and First National of Chelsea, Okla., to merge as Lakeside State.

* First national of Ainsworth, Neb., to merge into First National of Chadron, Neb.

* First Community Bank, Kansas City, Kan., to merge into Security Bank, Kansas City, Kan.

* First Bank of Haskell, Okla., to merge into Citizens Security Bank, Bixby, Okla. Both banks are owned by Mabrey Bancorp, Okmulgee, Okla.

* Northeast National, Mesquite, Texas, to merge into Patriot Bank, Houston.

* First National of Goliad, Texas, to merge into American Bank, Corpus Christi, Texas.

* Texas Premier Bank, Brookshire, to merge into Enterprise Bank, Houston.