Update: SENB Bank to unite with CBI Bank after merger

MUSCATINE, Iowa – CBI Bank & Trust will expand its footprint across the Quad Cities and beyond when it completes its merger of SENB Bank, a longtime family-owned bank based in Moline.  In a joint news release on Friday, June 1, officials with CBI’s parent company, Central Bancshares, Inc., as well as McLaughlin Holding Company […]

MUSCATINE, Iowa – CBI Bank & Trust will expand its footprint across the Quad Cities and beyond when it completes its merger of SENB Bank, a longtime family-owned bank based in Moline.  In a joint news release on Friday, June 1, officials with CBI’s parent company, Central Bancshares, Inc., as well as McLaughlin Holding Company (parent of SENB), announced they had signed an Agreement and Plan to Merger. Under the agreement, SENB and its six locations will merge into CBI Bank, which now operates 17 banking centers in eastern Iowa and western Illinois.  “We couldn’t be more excited to partner with them,” Greg Kistler, president and CEO of Muscatine-based Central Bancshares and CBI Bank, told the QCBJ in a telephone interview Friday afternoon. “It is the largest acquisition we’ve done, which also makes it exciting for us.” 

Calling the merger “a great cultural combination,” he said in the release, “They share our core community banking philosophy: empowered local management and employees dedicated to serving our customers and communities.”  Financial terms of the transaction were not disclosed. The transaction could be completed as early as the third quarter of 2023 and is subject to shareholder and regulatory approval. According to Mr. Kistler, CBI leadership traveled Friday to SENB’s Quad Cities locations to meet with staff, and will meet with SENB’s “stateline region” (Rockford, Illinois and Beloit, Wisconsin) staffs today, June 5.  He told the QCBJ that SENB’s leadership first announced the news internally on Thursday, June 4.  “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. 

He told the QCBJ in an interview: “Our customers will continue to receive the exceptional level of customer service that they’ve come to expect, plus the added resources and services that a larger organization can provide – all while retaining local decision-making.”  Mr. Kistler said CBI intends to maintain SENB’s management team and staff. “They know that market and have been in the market a long time. We look forward to having their management team become part of ours,” he said.  CBI currently serves 40,000 consumers and businesses through locations in Iowa and western Illinois. In Iowa, its locations include Coralville, Davenport, Kalona, Muscatine, Walcott, Washington and Wilton; and in Illinois, it has locations in Brimfield, Buffalo Prairie, Galesburg, Monmouth and Peoria.  While headquartered in Muscatine, Mr. Kistler said it also maintains a large hub in Galesburg after an earlier merger with F&M Bank there.   When its merger of SENB is completed, the privately held Central Bancshares will have total assets in excess of $1.45 billion, he added.  SENB, which was organized in 1961, has total assets of about $337 million, the release said.  With 70 employees, SENB serves the Quad Cities market in Iowa and Illinois, as well as the state-line (Rockford/Beloit) region of Illinois and Wisconsin. Its six locations include Moline and Roscoe in Illinois; Davenport, Bettendorf and Buffalo in Iowa; and Beloit, Wisconsin.  Central Bancshares employs 225 across its organization, Mr. Kistler said. In addition, the bank’s Trust and Investment Divisions manage combined client assets of approximately $1.4 billion.  Its CEO since 2010, Mr. Kistler said SENB’s geographical locations will provide a good connection between CBI’s Muscatine headquarters and the Quad Cities, where – with the SENB branches added in – it now will have five banking locations in Scott County alone.  In the release, he assured customers that they “will not see any immediate changes. The bank will continue to operate at the same locations, supported by the same friendly officers and staff. … In short, it will be business as usual, supported by the financial strength and resources of a larger parent organization.”  He told the QCBJ that system conversions will not occur until 2024.  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.