Two Illinois bank corporations propose merger SPRINGFIELD - Spring Bancorp Inc. and Staun Bancorp Inc. have announced plans for a merger. The transaction will merge First Community State Bank (FCSB), a subsidiary of Staun Bancorp Inc. with Bank of Springfield (BOS), a subsidiary of Spring Bancorp, Inc. The affiliation and reorganization is subject to Staun Bancorp shareholder and regulatory approval. BOS was founded in 1965 in Springfield and remains locally owned and operated. BOS currently serves six communities in Illinois with branches in Springfield, Chatham, Jacksonville, Quincy, Swansea and Shiloh. FCSB serves Staunton, Glen Carbon, Edwardsville and surrounding communities. Upon completion of the merger, BOS will have a total of 11 branches. FCSB President Ray Carrion said, “The shareholders and staff are excited about the upcoming merger. It will enhance shareholder value and provide an opportunity to expand the products and services we can offer our customers, including additional ATM access.” According to Carrion they will be able to offer wealth management services including investments, trusts and life and disability insurance programs. They will also offer sweep accounts that allow funds to be transferred between traditional bank accounts and investments. The merger will also expand lending capacity. In the past, FCSB has not engaged in jumbo loans, (loans that exceed Freddie Mac and Fannie Mae maximum loan limits). The merger will change that. Additionally, they will be able to take on more secondary mortgage loans and broader services in the area of farm lending. Commercial customers will notice more robust banking services. They will offer a service that enables businesses to “pre-authorize” payments presented against their bank accounts. This service helps protect against fraudulent transactions. Additional services will save commercial customers some trips to the bank. Tom Marantz, Chairman of Spring Bancorp and Staun Bancorp boards stated, “The merger will benefit customers in all of our markets while allowing us to improve operating efficiencies. We’ve had great success in the St. Louis Metro East market and look forward to expanding into the Staunton/Edwardsville area”. Marantz also emphasized that all current FCSB management and employees will continue to operate in their current capacity at the branches after the merger so customers will continue to maintain their relationships with the current staff. Marantz went on to say BOS and FCSB have a long standing history that dates back to 1972 when BOS founder Jack Marantz led a purchase of FCSB. In 1974 Carrion joined BOS and in 1978 Jack Marantz asked Carrion to go to Staunton to manage FCSB. Thirty-five years later, Carrion continues to run branch operations. The merger is expected to be completed during the second quarter of 2014.
Posted on: Thu, 23 Jan 2014 21:28:38 +0000
Trending Topics
Recently Viewed Topics
© 2015