WIUM Tristates Public Radio

Lee County Banks and Insurance Companies to Merge

Oct 26, 2015

The merger of two banks and two insurance companies in southeast Iowa could be completed by late 2016. Matt Morris, President/CEO of Fort Madison Bank & Trust, said the move will be good for the region.

"It facilitates the opportunity to create a premier community banking and insurance franchise in the Tri-State area by leveraging our combined strengths, assets and people," Morris said.

The businesses involved in the merger are:

  • Fort Madison Bank & Trust
  • Albers Insurance
  • Keokuk State Bank & Trust (KSB Bank)
  • KSB Insurance

They will operate under the umbrella of Fort Madison Financial Company, which is the parent company of FM B&T and Albers Insurance, during much of 2016. By the end of the year, they will emerge with a single name and identity.

The merger requires regulatory approval.  

Joe Steil, President/CEO of KSB Bank, said the goal was to find a new ownership structure without drastically changing personnel or employment.

“This was a very important aspect of the sale, “ Steil said. "We wanted to partner with a bank that would take care of our employees and make the needs of our customers a priority. We’ve chosen that partner and will work very closely with them to ensure a successful transition.” 

The new company is expected to employ about 85 people. It will hold assets of around $265-million.

The companies currently operate in:

  • Burlington
  • Fort Madison
  • Keokuk
  • Montrose

The banks have each been open for more than 145 years.