Central Bancshares to expand in Illinois with acquisition

Kent - stock.adobe.com

Central Bancshares in Muscatine, Iowa, said it plans to acquire McLaughlin Holding Co. in Moline, Illinois.

Central, the parent of the $1.1 billion-asset CBI Bank & Trust, said in a press release the deal was expected to close in the third quarter, with systems conversions to follow in 2024. Pricing and deal terms were not disclosed. McLaughlin is the parent of the $341 million-asset SENB Bank, which will be merged into CBI Bank & Trust.

"We are excited to partner with SENB Bank," Greg Kistler, Central's president and CEO, said in the Friday release. "They share our core community banking philosophy: empowered local management and employees dedicated to serving our customers and communities.

"After the acquisition is completed, customers will not see any immediate changes," Kistler added. "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."

Terry Esch, president of McLaughlin and SENB Bank, called the planned combination "a great opportunity and an excellent fit for both organizations."

Central has 17 branches, and its trust and investment divisions manage combined client assets of about $1.4 billion. Central would have total assets of nearly $1.5 billion after the deal closes. 

SENB Bank serves the Quad Cities market, which straddles Iowa and Illinois, as well as the Rockford, Illinois, area and neighboring markets in Wisconsin. It has six branches, according to its website.

Cummings & Co. and Barack Ferrazzano Kirschbaum & Nagelberg advised Central on the transaction. Olsen Palmer and Dickinson Wright advised McLaughlin.