MUSCATINE, Iowa – Moline-based SENB Bank will merge into CBI Bank & Trust after a merger agreement between the two banks’ parent companies, the banks announced Friday, June 1.
In a joint news release, Central Bancshares, Inc. (CBI’s parent company) and McLaughlin Holding Company (SENB’s parent) announced the signing of an Agreement and Plan of Merger. Under the agreement, Central Bancshares will acquire McLaughlin Holding Company, merging the more than 60-year-old SENB Bank into CBI Bank & Trust, based in Muscatine.
The holding companies did not release financial terms of the transaction. The transaction is subject to shareholder and regulatory approval and is expected to be completed in the third quarter of 2023.
“It’s a great opportunity and an excellent fit for both organizations,” Terry Esch, president of McLaughlin Holding Company and SENB Bank, said in the release. “Our customers can rest assured that there is a strong commitment to continue providing the same safe, stable banking environment that they’ve grown to know and trust and that they will continue to receive the same high level of customer service.”
That sentiment was reinforced by Greg Kistler, president and CEO of Central Bancshares and CBI Bank & Trust. “We are excited to partner with SENB Bank,” Mr. Kistler said in the release. “They share our core community banking philosophy: empowered local management and employees dedicated to serving our customers and communities.”
According to the release, SENB Bank was organized in 1961 and has total assets of about $337 million. Based in Moline, it serves the Quad Cities market in both Iowa and Illinois, as well as the state-line (Rockford/Beloit) region of Illinois and Wisconsin. SENB has six locations including Moline and Roscoe in Illinois; Davenport, Bettendorf, and Buffalo in Iowa; and Beloit, Wisconsin.
Muscatine-based Central Bancshares is the privately held parent company of CBI Bank & Trust as well as F&M Bank, a division of CBI Bank & Trust, based in Galesburg, Illinois.
Central Bancshares serves approximately 40,000 consumers and businesses through 17 nanking centers with locations in Coralville, Davenport, Kalona, Muscatine, Walcott, Washington, and Wilton in Iowa as well as Brimfield, Buffalo Prairie, Galesburg, Monmouth, and Peoria in Illinois.
In addition, the bank’s Trust and Investment Divisions manage combined client assets of approximately $1.4 billion.
After the completion of the transaction, Central Bancshares will have total assets in excess of $1.45 billion.
According to the release, both companies’ boards of directors and executives believe that the transaction will create a strong partnership, bringing together two compatible, community-oriented banking enterprises.
“After the acquisition is completed, customers will not see any immediate changes,” Mr. Kistler added. “The bank will continue to operate at the same locations, supported by the same friendly officers and staff. Systems conversions will take place in 2024. In short, it will be business as usual, supported by the financial strength and resources of a larger parent organization.”
Cummings & Company, LLC served as financial advisor and Barack Ferrazzano Kirschbaum & Nagelberg, LLP served as legal counsel to Central Bancshares in connection with the transaction. Olsen Palmer LLC served as financial advisor and Dickinson Wright PLLC served as legal counsel for McLaughlin Holding Company.
