Ted J. Vonderhaar, President of Pilot Grove Savings Bank, and Ty Logan, President of State Central Bank, have announced the signing of an agreement which allows Pilot Grove Savings Bank to acquire the State Central Bank Branch in Fort Madison.
“Pilot Grove Savings Bank is proud to join hands with State Central Bank, a reputable, long-time banking institution in Southeast Iowa that possesses sound banking practices along with outstanding history,” said Vonderhaar. “We have been waiting many years to increase our presence in the Fort Madison market, and we are extremely appreciative to State Central Bank for presenting us this opportunity.”
The opening of the supermarket branch in the County Market Store in 2006 offered customers an introduction to Pilot Grove Savings Bank and the products and services they offer. “Since then, the citizens of the Fort Madison area have graciously welcomed us to the community and ultimately helped us outgrow the current facility we operate from,” Vonderhaar said.
Up until just recently, Pilot Grove Savings Bank was proceeding with construction of a new bank facility on the corner of Avenue H and 18th Streets in Fort Madison, directly across the street from their County Market Supermarket location.
“When the opportunity came up to purchase the State Central Bank Branch in Fort Madison, with existing buildings in excellent locations, we felt it was worth looking into,” said Vonderhaar. “At this time, construction of the new Pilot Grove Savings Bank facility is on hold.”
According to Vonderhaar, the State Central Bank facilities included in the acquisition by Pilot Grove Savings Bank are the State Central Bank Branch at 619 9th Street in Fort Madison, the State Central Motor Bank at 4520 Avenue L in Fort Madison, and the Herky ATM on the east end of town. The State Central Main Bank Offices in Keokuk along with the other bank branches in Bonaparte, Farmington, Stockport, and Dubuque, will not be affected by the change.
“As Pilot Grove Savings Bank celebrates its 100th Anniversary this year, we felt the time was right to acquire an existing community bank in the market which carries a historic presence,” Vonderhaar said. The facility located at 619 9th Street was formerly the Iowa State Bank prior to its purchase in 1988 by State Central Bank.
Ty Logan, President of State Central Bank feels the acquisition will be a positive move. “We believe our customers and the Fort Madison community will benefit substantially from this acquisition by a respected neighboring bank that has a strong and stable commitment to Southeast Iowa. Pilot Grove’s proven community responsibility and banking skills will provide our customers and friends in Fort Madison with the very best financial leadership”
Vonderhaar stated, “Our current plans are to welcome the staff of State Central Bank in Fort Madison to the Pilot Grove Savings Bank family. It is important for our customers to continue working with bank personnel they know and trust as we merge our staffs.”
Pilot Grove Savings Bank, with offices in Pilot Grove, Houghton, Donnellson, West Point, Mount Pleasant, Packwood, Winfield, and Fort Madison, is a full-service independent bank with over $325 million in assets and over 90 employees. It is owned by employees through an Employee Stock Ownership Plan and 125 local stockholders, with no single stockholder owning more than 5% of the stock.
The acquisition is subject to regulatory approval and is anticipated to close late in the fourth quarter of 2011 or in the first quarter of 2012.