Valley Bank & Trust of Cherokee and State Savings Bank of Creston announced today that they have entered into an Agreement and Plan of Merger, pursuant to which State Savings Bank and Valley Bank & Trust will combine their businesses.
Bedford Bancorp, holding company for State Savings Bank, and D&H Investments, holding company for Valley Bank & Trust, confirmed the approval by the stockholders to merge the two Iowa-based companies.
The combined entity will operate under the State Savings Bank charter.
Both of the holding companies are currently owned by Tad and Jill Hammond of Nebraska City, Neb. The Hammonds have been the principal shareholders of Bedford Bancorp since 1977, and D&H Investments since 1985. The combined organization would have approximately $80 million in assets, with offices in Bedford, Creston, Clearfield, Cherokee, and Marcus.
Patrick Kirby of Cherokee, CEO of Valley Bank & Trust, said that "The merger will combine two companies with very comparable strategies. There will not be any changes to the ownership structure or the lending philosophies of the banks. The combined assets of the banks will allow us to market our services to an expanded customer base and we will also be able to offer some additional services in all our locations."
The completion of the merger is subject to receiving certain regulatory approvals. The transaction is expected to be completed this fall.