Jane O. Kosman - Page 7

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            Scottsbluff National Corp. stock for each 3.3 shares of Western                               
            National Bank stock.                                                                          
                  Western National Bank's main office became a branch office                              
            of Scottsbluff National Bank, and the branch office of Western                                
            National Bank was closed.  As a result of the merger, about 20                                
            employees of Western National Bank became employees of                                        
            Scottsbluff National Bank.                                                                    
            8.    Nebraska Economy                                                                        
                  a.  Statewide                                                                           
                  From late 1986 to early 1987, the Nebraska economy was fair                             
            to poor.  The State's economy grew more slowly than the nation's                              
            economy because of low prices for agricultural commodities                                    
            produced in Nebraska.  The average per-acre value of farm land in                             
            Nebraska fell from $730 in 1982 to $335 in 1987, a decline of 54                              
            percent over 5 years.                                                                         
                  b.  Northwestern Nebraska                                                               
                  From 1984 to 1986, per capita income rose 11.61 percent for                             
            the country and 8.72 percent in northwestern Nebraska (which                                  
            includes Scottsbluff).  From 1980 to 1986, total receipts for                                 
            farm products in northwestern Nebraska decreased 11.2 percent                                 
            before adjustment for inflation.                                                              
                  Business conditions were poor in northwestern Nebraska                                  
            during the middle 1980's.  During 1986 and 1987, uncertainty over                             
            whether the Chicago & Northwestern R.R. Co.'s railway line would                              





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