Trimmer Liberty Bank selling branches

WEST DES MOINES, Iowa --- Liberty Bank, which has operated under tightened regulatory scrutiny since July, is trying to get leaner while it intensifies its focus on eastern Iowa, according to its top officer.

The changes will lead to perhaps 100 fewer employees than the 280 it had before, said John Rathjen, Liberty's CEO and president.

The changes do not affect the Cedar Valley market, said Rathjen.

"We have no plans to divest of those markets," Rathjen said. "The 380 corridor is an attractive market for us. It's one we're committed to."

The bank has one branch each in Waterloo and Cedar Falls. Two years ago, Liberty sold its branches in Grundy Center and Eldora to Green Belt Bank & Trust.

Liberty is cutting elsewhere to meet the demands of regulators.

Regulators informed Liberty on July 14, 2011, that the company needed to raise its core capital ratio. The bank suffered loan losses in Florida during the recession.

The bank is selling four locations in northwest Iowa to Northwest Bank. Last week, Liberty also announced an agreement to sell branches in Garner and Klemme to Ames National Corp.

On Tuesday, Rathjen said Liberty also is selling its Granger branch to Earlham Savings Bank of West Des Moines. The bank also has closed a branch in Iowa City.

Tuesday Ackley State Bank, part of Grundy Center-based GNB Bancorporation, announced it has entered into an agreement to buy Liberty's Iowa Falls branch.

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Trimmer Liberty Bank selling branches