1. The superintendent, within thirty days of receipt of an application by a regional bank holding company to make an acquisition as authorized by this division, shall do one of the following:
a. Accept the application for processing if it is substantially complete.
b. Request additional information as may be necessary to complete the application.
c. Return the application if it is substantially incomplete.
2. If an application is accepted for processing, the superintendent shall immediately notify the applicant that the application is accepted for processing and, unless the application is solely to acquire a troubled bank, publish notice of the application in the administrative bulletin.
3. Within thirty days of acceptance of an application for processing, the superintendent shall commence an investigation into the condition of the applicant and the bank or bank holding company proposed to be acquired. The superintendent may request additional information from the applicant and require its production as a condition of approval of the application.
4. The superintendent shall approve or disapprove an application within one hundred eighty days after the filing of the complete application. The time period shall be extended upon request of the applicant.
5. In deciding whether to approve an application for an acquisition under this division, the superintendent shall determine whether the proposed acquisition will promote the general good of the state, making specific written findings on each of the following criteria. The superintendent shall not approve the application unless the superintendent finds that the proposed acquisition will be of benefit to this state upon consideration of all of the following:
a. Will result in the employment of net new funds within the state. The finding as to net new funds shall take into consideration, in addition to the applicant's plans for capital investment, such other factors as its policies on loans, investments, and dividends, and its general business operations, including the range of individual and business services to be offered and the charges for the services.
b. Will maintain a reasonable level of deposits in the acquired bank to be employed within the state.
c. Will result in the enhancement of the acquired bank's ability to meet the credit needs of its entire community, consistent with safe and sound operation of the bank. In making this determination the superintendent shall assess and consider the past performance of the existing bank subsidiaries of the applicant and of the expected future performance of the acquired bank in all of the following areas:
(1) The bank's participation, including investments, in local community development and redevelopment projects or programs.
(2) The bank's origination of residential mortgage loans, housing rehabilitation loans, home improvement and energy conservation loans, student loans, loans to women and minority-owned businesses and small business or small farm loans within its community, or the purchase of such loans originated in its community.
(3) The bank's participation in governmentally insured, guaranteed, or subsidized loan programs for education, housing, small businesses or small farms, such as the Iowa housing finance authority, the small business administration and the United States department of agriculture rural economic and community development or consolidated farm service agency.
(4) The bank's ability to meet various community credit needs based on its financial condition and size, legal or regulatory restrictions or requirements, local economic conditions, and other factors.
(5) Activities conducted by the bank to ascertain the credit needs of its community, including the extent of the bank's efforts to communicate with members of its community regarding the credit services being provided by the bank.
(6) The extent of the bank's marketing and special credit- related programs to make members of the community aware of the credit services offered by the bank.
(7) The extent of participation by the bank's board of directors in formulating the bank's policies and reviewing its performance with respect to the purposes of the federal Community Reinvestment Act.
(8) Any practices intended to discourage applications for types of credit offered by the bank.
(9) The geographic distribution of the bank's credit extensions, credit applications, and credit denials.
(10) The geographic distribution of the bank's demand deposits and time deposits, and the geographic distribution of areas with better than average deposit to loan ratios.
(11) Evidence of prohibited discriminatory or other illegal credit practices.
(12) The bank's record of opening and closing offices and providing services at offices.
(13) Any conviction for a felony within the preceding five years relating to the business of banking by any applicant or its subsidiaries, or any of their current directors or officers.
(14) The extent of foreign loan exposure and disclosure of information relating to such exposure as the superintendent may require.
d. Will not relieve any corporation of any obligation of its charter franchise.
e. Will favorably affect the economy of the state as a whole or of any area affected by the proposed transaction.
f. Will not result in banking monopoly or restraint of banking competition in the areas affected.
g. Will favorably affect borrowers or depositors of small sums.
h. Will not involve any violation of law or breach of trust.
i. Will be consistent with the public good and in the interests of the acquired bank's depositors.
j. Will not result in the acquisition of an Iowa bank by a bank or a bank holding company of inadequate safety and soundness and will not result in the impairment of the safety and soundness of the Iowa bank to be acquired.
k. Will result in net new agricultural financing in this state.
l. Will on balance have a positive effect upon the community interests of the communities served by the bank or banks to be acquired. In considering community interest factors, the superintendent may investigate in addition to the effects of the acquisition on shareholders or depositors, the effects of the acquisition on employees, suppliers, creditors, short-term and long-term impact upon community interests, and community development.
6. If an acquisition involves solely a troubled bank, the superintendent may waive or modify one or more limitations or conditions of this division if the superintendent determines in the superintendent's discretion that any or all of the following conditions exist:
a. The troubled bank cannot be sold unless a specific limitation or condition is modified or waived.
b. Modification or waiver of a specific limitation or condition will substantially increase the sale price received to the benefit of depositors or creditors other than shareholders.
c. Modification or waiver of a specific limitation or condition will substantially speed the sale to prevent further loss of capital.
7. The superintendent shall issue an order either approving or disapproving an application. The order shall include findings of fact based upon the application, investigation, public comments, or other submittals or evidence considered. An order disapproving an application shall list the specific reasons for disapproval.
8. Approval shall be conditioned upon the applicant entering into a contract with the superintendent providing that any bank located in this state and owned or controlled by the applicant will be operated in a manner that conforms to any actions, promised to be undertaken by the applicant in its application, to correct any deficiencies in the procedures or operations of the acquired bank, including requirements of subsection 5, which promises were necessary to allow the superintendent to approve the application. As part of such contract, the applicant shall agree that the applicant, as well as any Iowa bank or Iowa bank holding company acquired by the applicant, shall provide reports to and permit examinations of its records by the superintendent to the extent necessary to ensure compliance with the promises referred to in the application.
9. Appeals from a decision of the superintendent shall be pursuant to chapter 17A.
90 Acts, ch 1002, §6; 90 Acts, ch 1266, § 54, 55; 95 Acts, ch 216, §25
Iowa General Assembly
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