It is the short term goal of the Longview Capital Corporation to acquire rural community banks in East Central Illinois until its total assets approach $500,000,000. I would expect that our banks and facilities should be 15 to 20 miles apart. We want to be in convenient driving distance of every resident in the area. We will offer financial services that will attract farmers and agri-business customers as well as local area consumers and depositors. It is our plan that the Longview Capital Corporation will be owned by the Albin family and the officers and directors of the subsidiary banks.
Our employees will be personally acquainted with our customers and will extend friendly, personal service to them. We hope to grow in services such as farm management, trusts, accounting, a web page, internet banking, insurance, consulting, packaging intermediate and/or long term loans.
We must support and encourage placement of small non-agriculture related industry into these communities to offer off farm employment and to diversify the sources of income for these areas (i.e. the banks). We will support Illini Community Development Corporation, our bank community development corporation, in its efforts to bring new jobs to our market area.
I would hope that we would be characterized as “Building Rural Illinois ” and that the communities served by our banks would grow and prosper at a faster rate than other rural communities because of the financial and social leadership fostered by the officers and employees of those banks.
It is most important that the banks owned by Longview Capital Corporation earn, after tax, profits of at least 1.2% of assets or better. This rate of return is necessary for the holding company to retain the capital required to match the growth in assets of its banks.
It appears at this time that part of the growth will be in the form of purchasing 20+ million dollar banks in Rural East Central Illinois and West Central Indiana, while in other cases subsidiaries of Longview Capital Corporation will open branches in convenient locations in our market area. Part of the capital of the Longview Capital Corporation will be used to develop the Midwest AgriCredit Co to access sources of funds, other than deposits, for agricultural lending.
This means that Longview Capital Corporation will likely be made up of four or five 100 million dollar banks in four or five counties. Each bank may have one to three branches.
As we grow in size, it will be more and more important to coordinate our efforts in accounting, investments, policies, marketing, compliance, setting rates and personnel management and utilization.
We expect to be the model which others will look to as the leader in servicing rural banking needs through the 21st Century.
John S. Albin