First Bank & Trust, Brookings, South Dakota, (FB&T) announced the signing of a definitive agreement to acquire two banks, Peoples Bank of Commerce and State Bank of New Prague, both owned by the Duke Financial Group of Minneapolis (DFG).
Peoples Bank of Commerce, with assets of $296 million, has locations in Cambridge, Princeton, East Bethel, Edina and Roseville. State Bank of New Prague has one location and assets of $112 million. With the acquisition, the name of the banks will change to First Bank & Trust.
“Our commitment to community banking, high customer satisfaction and a dedication to our communities has enabled us to attract knowledgeable bankers who are invested in the success of our clients,” said Scott Laugen, president and CEO of Peoples Bank. “First Bank & Trust shares these core values, making them a great partner for us.”
Laugen is eager for the advantages this merger offers his clients, including more regional bank locations and additional products and services, like trust and investment services.
“Our clients will continue to be served by the same great staff they are used to seeing at our locations,” Laugen said. “Yet they will now have access to all 23 First Bank & Trust locations in the region, as well as expanded services. Having that, along with our continued commitment to the growth and success of the community, is a win/win.”
Kevin Tetzlaff, president & CEO of First Bank & Trust, Brookings, said his organization was attracted to Peoples Bank of Commerce and State Bank of New Prague because of the quality of their management and employees, as well as their commitment to community banking.
“We think we have a common philosophy that our customers are best served by bankers who are responsive and empowered to make decisions locally,” he said.
“We are pleased to form this partnership,” said David Hyduke, chairman of DFG. “First Bank & Trust is a first rate community bank, and our values are strongly aligned, which will make it easier to integrate our banks.”
Hyduke credited FB&T’s culture and employee-ownership as the biggest draw for DFG in this merger, as well as the Fishback family’s 135-year commitment to community banking.
With the acquisition, which still requires DFG shareholder and regulatory approval, First Bank & Trust will have assets of over $1.7 billion. David Waligoske, President and CEO of Fishback Financial Corporation (FFC), the holding company that owns FB&T, said this acquisition will enable First Bank & Trust to better compete regionally.
“With Peoples and State Bank joining our family, we can seamlessly blend the best of both organizations and bring an expanded offering of financial services to the area” said Waligoske. “In addition our staff has ownership through our ESOP, and we believe this employee ownership creates an additional level of pride to help maintain our high-performing company”.
The transaction is set to close in late 2017. FFC has total assets of $2.3 billion and is the parent company of FB&T, which has South Dakota locations in Milbank, Stockholm, Vermillion, Toronto and White, along with a bank in Pipestone, Minnesota. FFC also owns First Bank & Trust, Sioux Falls, South Dakota with locations in Watertown, Garretson, Madison and Canton, South Dakota.
About First Bank & Trust
First Bank & Trust has a history of community banking that dates back more than 135 years. It is part of Fishback Financial Corporation – one of South Dakota’s largest privately held bank holding companies. A family- and employee-owned bank, First Bank & Trust has 17 locations in 12 towns along the I-29 Corridor in eastern South Dakota and southwestern Minnesota. Learn more at www.bankeasy.com.