KEWANEE — Peoples National Bank of Kewanee and Reynolds State Bank are jointly announcing that they have reached an agreement by which Peoples National Bank of Kewanee will purchase Reynolds State Bank. The agreement is contingent upon the approval of bank regulatory agencies which typically takes 4 to 6 months.
As a result, the transaction will likely close in the first quarter of 2021. Reynolds State Bank has one location in Reynolds.
Peoples National Bank of Kewanee President Chip Eastman stated: “We are extremely pleased to have the opportunity to acquire such a great community bank. The Reynolds community offers excellent opportunities for us. We have always been, and will continue to be, a strong supporter of the communities that we serve and look forward to active involvement in Reynolds and the surrounding area.”
Reynolds State Bank President Norman Wait said: “Peoples National Bank of Kewanee has positioned itself much like Reynolds State Bank, being committed to a strong and safe Community Bank with an excellent reputation in the communities they serve.”
LaVonne Wait, senior vice president, continued, “In today’s financial environment that is heavily weighted on compliance and regulation, along with the need to invest in technology to meet the needs of the consumer, banks are forced to make decisions on how to position themselves in this competitive environment moving forward. One would like to think that every bank can still operate like it did 10 years ago, but that’s just not a realistic approach as we look at this rapidly changing world of banking today. This merger will allow us to offer additional financial services to all of our customers plus increase our lending limits helping Reynolds and the surrounding communities.”
The acquisition will increase Peoples National Bank of Kewanee’s total assets by approximately $100 million resulting in total assets after acquisition of approximately $500 million. Peoples National Bank of Kewanee currently has branches in Annawan, Bradford, Dwight, Manlius, Seneca, Sheffield and Tampico in addition to its two Kewanee locations.
Norman Wait and LaVonne Wait, speaking on behalf of all the directors, stated “Reynolds State Bank was organized in 1888 to serve the financial needs of the people of this wonderful community and the surrounding communities. Peoples National Bank of Kewanee was established in 1928 for the same purpose in Kewanee. Both are driven to be outstanding community banks, something we are both very proud of.”