C. R. BANKER MONICA VERNON EYES BLUM'S DIST. 1 CONGRESSIONAL SEAT

8-8-16

 

Greetings, Gazette Editorial Board, George Ford and all—

In the 3-30-14 Gazette, George Ford reported Monica Vernon, and 7 others, apparently paid cash and purchased controlling interest in MSB Corp., owner of City State Bank and City State Insurance Agency of Central City.   The name of the bank was changed to NXT and it now has a subsidiary in Cedar Rapids.  Even though the Gazette has said little if any more about it, Iowalive net workers thought it curious a politician would want controlling interest in about a $250 million bank, so gave it a closer look than did the Gazette. 

Owning the bank makes it much more convenient for Monica to make lucrative ‘insider’ deals with Cedar Rapids officials, at taxpayer expense, and to likely handle her congressional campaign finances, to fit her needs as well.  

But there is much more.  A bank evaluator would likely find the following numbers to be most curious, since NXT’s Insider Loans and Volatile Liability numbers are so far out of the performance norms of 39 other Iowa banks of comparable size, according to public bank data obtained on website:  https://www5.fdic.gov/sdi/main.asp summarized as follows. 

‘MONICA’S’ NXT BANK IS IN A BANKER’S  WORLD OF ITS OWN

Insider Loans:  NXT Bank is 380% higher than their 39 Iowa bank peers (Asset class ranging from $200M to $300M)

Insider Loans:

NXT  $15,772,000

39 Bank Peers  $128,257,000

Net Loans & Leases (Total):

NXT $208,661,000

39 Bank Peers $6,242,547,000

Percent Insider Loans:

NXT: 7.6% ($15,772,000 / $208,661,000)

39 Bank Peers: 2.0%  ($128,257,000 / $6,242,547,000)

Difference:  380%  (7.6 / 2.0) more insider loans at Monica’s NXT bank. 

Volatile Liabilities:  NXT Bank is 265% higher than their 39 Iowa bank peers (Assets ranging from $200M to $300M)

Volatile Liabilities:

NXT  $47,088,000

39 Bank Peers  $631,799,000

Total Liabilities:

NXT $236,434,000

39 Bank Peers $8,451,058,000

Percent Volatile Liabilities to Total Liabilities:

NXT: 19.9% ($47,088,000 / $236,434,000)

39 Bank Peers: 7.5%  ($631,799,000 / $8,451,058,000)

Difference:  265%  (19.9 / 7.5) more volatile Liabilities at ‘Monica’s’  NXT bank. 

So it appears ‘Monica’s’ bank relishes Insider Loans and Volatile Liabilities!

Will Monica therefore claim her unusual bank experience, with Insider Loans and Volatile Liabilities, highly qualifies her for a seat in government, that voter’s hold in bitter contempt, for Insider Deals and Reckless Spending!!

Anyone claiming to have better numbers than those herein is asked to provide them. 

Sincerely,

Iowalive      A growing network of volunteer citizens and professionals for improving Iowa