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Lee County Banks and Insurance Companies to Merge

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.

Jason Parrott is a former reporter at Tri States Public Radio.