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a. Petitioner’s Expert’s Estimate of the Value of Kosman,
Inc.'s Scottsbluff National Corp. Stock
Petitioner's expert compared Scottsbluff National Bank to
Nebraska’s nine other largest banks. He noted that, of those
banks, only First National Bank of Columbus (the sixth largest),
Scottsbluff National Bank (the seventh largest), and Delay
National Bank of Norfolk (the eighth largest) were not located in
Omaha or Lincoln, Nebraska.
Petitioner's expert concluded that Scottsbluff National Bank
had strengths and weaknesses compared to Nebraska’s nine other
banks. He noted that Scottsbluff National Bank consistently
produced substantial profits and that it had an acceptable amount
of overhead expense. He stated that the primary weaknesses of
Scottsbluff National Bank were that much of its loan portfolio
was in agricultural loans and that the percentage of its
nonperforming loans was higher than six of the nine other largest
Nebraska banks.
Petitioner's expert considered as possible comparables four
publicly traded bank holding companies that owned one or more of
the 10 largest Nebraska banks. These four companies were:
Norwest Corp., which owned Norwest Bank in Omaha (Nebraska's
largest bank); FirsTier Financial, which owned FirsTier Bank in
Omaha (the second largest bank) and FirsTier Bank in Lincoln (the
third largest bank); First National of Nebraska, which owned
First National Bank of Omaha (the fourth largest bank); and First
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