Washington Savings MHC (“Washington Savings”), Washington Savings Bank (“Washington Savings Bank”) and The First National Bank of Mattoon, Illinois (“First National Bank”) announced the execution of a definitive agreement under which First National Bank will merge with and into Washington Savings Bank. The terms of the deal were not disclosed.
First National Bank is a wholly-owned subsidiary of MGB Bancshares Inc. and has two banking facilities in Mattoon, Illinois, and one banking facility in Lerna, Illinois. First National Bank had total assets of $105.2 million at Dec. 31, 2020. In addition to traditional banking services, First National Bank also provides trust and investment services and wealth management services.
“First National Bank has maintained an excellent reputation in the community under the leadership of Preston Smith. We are excited at the opportunity to acquire First National Bank and to increase our community banking presence in the Mattoon area. The transaction will significantly enhance our wealth management capabilities,” said David Doedtman, President of Washington Savings Bank.
Preston Smith, Chief Executive Officer of First National Bank, said, “We are excited to partner with a strong community bank like Washington Savings Bank. We believe that this combination provides an opportunity for us to provide an expanded range of products and services to our customers while maintaining the high quality of customer service that our customers have come to expect.”
As of Dec. 31, 2020, the combined banks would have had total assets of approximately $559.3 million and wealth management assets of nearly $100 million.
The transaction has been approved by each bank’s board of directors and is expected to close in the third quarter of 2021, subject to regulatory approvals, the approval of MGB Bancshares Inc.’s stockholders, and the satisfaction of customary closing conditions.