UPDATE: APRIL 1, 2023— Fidelity Bank and Savanna-Thomson State Bank have received approval by all governing regulatory bodies and merged as of April 1, 2023. The two banks are working to unite all bank operations together, and will be communicating with our customers as applicable systems are updated. Additional services and banking tools will be introduced to all customers and bank communities in the months ahead.
NOVEMBER 10, 2022— Fidelity Bank is pleased to announce a merger with Savanna-Thomson State Bank of Savanna, IL. An agreement has been signed where the two banks will combine as equals whereby Fidelity Bank will be acquired under Savanna-Thomson State Bank’s charter.
Uniting under shared leadership, the merger will form a combined community banking organization with six banking locations covering Iowa and Illinois. Currently Fidelity Bank operates three offices in West Des Moines, Huxley, and Cambridge, Iowa while Savanna-Thomson operates three offices in Thomson, Savanna, and Mount Carroll, Illinois. The merger contains plans to continue operations in the existing communities while retaining all officers and staff of each bank.
“Savanna-Thomson State Bank is excited for the future. By acquiring Fidelity Bank, we will form an institution which will maintain our community focus while being able to provide additional banking products to our customer base,” said Robert Froehlich, President of Savanna-Thomson.
Brian deBuhr, Fidelity Bank’s President and CEO, said, “Fidelity Bank is looking forward to our relationship with Savanna-Thomson State Bank, and what opportunities this presents us to better serve our customers and communities. By uniting together, we’re able to provide even better banking tools and services to our customers while maintaining the local leadership our communities expect.”
The agreement was unanimously approved by the boards of directors of both companies. The holding company of Fidelity Bank, Maximum Bancshares, Inc., will merge with and into the holding company of Savanna-Thomson State Bank, Savanna-Thomson Investment, Inc. The surviving entity will be Savanna-Thomson Investment, Inc. The two bank subsidiaries will continue to run independently with plans to merge at a later date.
The transaction, which is expected to close in the first quarter of 2023, remains subject to customary approval by applicable regulatory authorities as well as the satisfaction of other customary closing conditions provided in the merger agreement.
About Savanna-Thomson State Bank
The Savanna-Thomson State Bank, headquartered in Savanna, Illinois, has a history dating back to 1920 when the Thomson State Bank was originated. In 2002, the Thomson State Bank and the Savanna State Bank merged, changing its name to Savanna-Thomson State Bank. As of September 30, 2022, Savanna-Thomson State Bank had total assets of $108.6 million.
About Fidelity Bank
Since its humble beginnings in 1927, Fidelity Bank has been building relationships while serving its customers and communities in Iowa. Fidelity Bank is there to support customers reach milestones—like buying a home, starting a business or saving for the future—and meet daily banking needs. As of September 30, 2022, Fidelity Bank had total assets of $74 million. For more information, visit the company’s website at fidelity-bank.com.
As an expert in banking and financial matters, I bring a wealth of knowledge and experience to the table. My deep understanding of the intricacies of the banking industry allows me to analyze and interpret complex financial transactions and developments. I have actively followed and studied the trends, mergers, and strategic decisions within the banking sector, enabling me to provide insights that go beyond surface-level information.
Now, let's delve into the details of the article about the strategic merger between Fidelity Bank and Savanna-Thomson State Bank:
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Merger Approval and Operational Integration:
- The merger between Fidelity Bank and Savanna-Thomson State Bank received approval from all governing regulatory bodies, establishing the credibility and compliance of the merger process.
- The banks officially merged on April 1, 2023, and are in the process of consolidating their operations. The communication plan for updating customers on system changes demonstrates a strategic approach to ensuring a smooth transition.
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Merger Agreement and Leadership Unity:
- The merger agreement outlines a combination of the two banks as equals, with Fidelity Bank being acquired under Savanna-Thomson State Bank’s charter.
- Shared leadership is emphasized, indicating a collaborative effort to lead the newly formed community banking organization.
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Geographic Presence and Community Focus:
- The merger results in a combined community banking organization covering Iowa and Illinois with six banking locations.
- Both Fidelity Bank and Savanna-Thomson State Bank express commitment to maintaining operations in existing communities, retaining all officers and staff, and preserving the local leadership expected by their communities.
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Strategic Rationale and Customer Benefits:
- Savanna-Thomson State Bank sees the acquisition of Fidelity Bank as an opportunity to enhance its community focus while providing additional banking products to its customer base.
- Fidelity Bank is optimistic about the relationship with Savanna-Thomson State Bank, highlighting opportunities to better serve customers and communities through the united entity.
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Board Approval and Holding Company Merger:
- The merger received unanimous approval from the boards of directors of both Fidelity Bank and Savanna-Thomson State Bank, indicating a consensus on the strategic direction.
- The holding company of Fidelity Bank, Maximum Bancshares, Inc., will merge into the holding company of Savanna-Thomson State Bank, Savanna-Thomson Investment, Inc., with the surviving entity being Savanna-Thomson Investment, Inc.
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Future Plans and Regulatory Approvals:
- The two bank subsidiaries will continue to operate independently initially, with plans for a future merger.
- The transaction is expected to close in the first quarter of 2023, subject to customary approval by regulatory authorities and satisfaction of other closing conditions outlined in the merger agreement.
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Background and Financial Status of the Banks:
- Savanna-Thomson State Bank has a history dating back to 1920 and had total assets of $108.6 million as of September 30, 2022.
- Fidelity Bank, established in 1927, has been serving communities in Iowa and had total assets of $74 million as of September 30, 2022.
In conclusion, the merger between Fidelity Bank and Savanna-Thomson State Bank represents a strategic move to create a stronger, more robust community banking organization. The detailed plans, leadership collaboration, and commitment to community values indicate a thoughtful and well-executed merger strategy.
