NBA's Harrison Barnes buys a 70-year-old Iowa bank for $25M
What's the deal? NBA forward Harrison Barnes has acquired Community State BankDealroom has a profile for this one. Try Dealroom → in Paton, Iowa, through his company Barnes Bancorp, Inc., in a $25 million deal. The 70-year-old, one-office bank serves rural Greene County, holding roughly $42 million in total assets and $35 million in deposits, mostly lending to local farmers.
Why now? Barnes, who grew up in Ames and now plays for the San Antonio Spurs, said the move grew from a desire to stay connected to Iowa. "The biggest thing for me was what's something that I could do that was similar to basketball that was about the community that was in the state of Iowa," he told the Ames Tribune.
What's the endgame? The bank's name, employees, and management will stay in place, chief executive officer Craig Marquardt said. Barnes wants to build on existing relationships rather than overhaul the institution. "This is not a vanity project," he said. "We want to be Iowa's next great bank."
Who's backing it? The acquisition drew a $5 million investment from Texas-based Cullen/Frost Bankers Inc. — namesake of the Spurs' home arena — adding capital and an established banking partner. Dan Geddes, group executive vice president and chief executive officer of Cullen/Frost, said Barnes spent years on bank boards learning the industry before pursuing a purchase.
What could go wrong? The bank is tiny, and its success will hinge on whether new ownership can expand reach while keeping the local service and lending focus that defines it. Paton has a population of about 220 people, 42 miles west of Ames.
The signal: The deal pairs a high-profile investor with a small rural lender, standing apart from conventional bank mergers. It arrives amid other Iowa community-bank transactions, including recent branch and small-bank sales — signs of ongoing reshuffling in the sector, if not yet a broad trend.
Read more: desmoinesregister.com
Image credit: Ron Cogswell
