Independence Bancshares, Inc., Independence, Iowa, has inked a deal with PSB Corporation, Wellsburg, Iowa, to acquire its subsidiary First State Bank, Sumner, Iowa.
Independence Bancshares’ $291 million subsidiary Northeast Security Bank has seven branches in Iowa including its Sumner headquarters. It had $177 million in net loans and leases and $227 million in deposits as of March 31.
“We are excited to reach an agreement in principle with PSB Corporation and First State Bank that will allow Northeast Security Bank to acquire First State Bank, Sumner and Fayette, and continue its proud tradition of customer service,” said Ben Pagel, president and CEO of Northeast Security Bank. “We look forward to the opportunity to serve First State Bank’s customers and strengthen the tradition of local community banking in Northeast Iowa.”
First State Bank has $100 million in assets and two branches in Sumner and Fayette, Iowa. It had $52 million in net loans and leases and $79 million in deposits as of March 31. It reported a net loss of $34,000 in the first quarter, compared to net income of $63,000 in the first quarter of 2019. It made $455,000 total in 2019 compared to a loss of $47,000 in 2018.
Ryan Sheridan, president of PSB Corporation, said of the transaction, “We are pleased to reach an agreement in principle with such a strong community bank. We have confidence that First State Bank’s customers will be well served by Northeast Security Bank.”
Terms of the deal were not disclosed.
The $375 million PSB Corporation also operates Denver Savings Bank, Denver, and Peoples Savings Bank, Wellsburg.