Savanna-Thomson State Bank in Savanna, Illinois, has agreed to acquire Fidelity Bank in West Des Moines, Iowa.
The deal would create a nearly $200 million-asset bank.
Executives from both banks said in a release announcing the deal Thursday that the combined bank would be more competitive with larger lenders.
"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," Brian deBuhr, president and CEO of the $74 million-asset Fidelity, said in the release.
The two banks will continue to run independently at the start and then merge brands at a later date, the companies said.
Financial terms of the deal were not disclosed. The $108.6 million-asset Savanna-Thomson expects to complete the transaction in the first quarter of 2023
Fidelity's holding company, Maximum Bancshares Inc., would merge into the buyer's parent, Savanna-Thomson Investment Inc.
