American Bank & Trust is set to acquire another community financial firm Farmers State Bank which focuses on agribusiness.
The financial details of the deal were not divulged.
The acquisition, subject to regulatory approval, is expected to strengthen the business of American Bank & Trust by helping it to introduce new products, services and technology for its customers.
Farmers State Bank has three locations across South Dakota in Stickney, Carthage and Iroquois.
American Bank & Trust president and CEO Doug Tribble said: “”We are pleased to have Farmers State Bank join our banking family. Agribusiness is at the core of both organisations, so this acquisition becomes a good fit strategically and geographically for both banks.
“We look forward to providing the Farmers State Bank customers with more South Dakota banking locations to conduct their business, over 90,000 surcharge free ATM’s, Trust and Wealth Management services and enhanced technology products as we move forward together.”
The transaction is expected to close in this quarter.
Established in 1892, American Bank & Trust is locally owned and manages nine branches. The acquisition is expected to improve the bank’s asset strength to $800m with 145 employees.
Commenting on the acquisition, Farmer’s State Bank president and CEO Gregory Bormann said: “This is a good deal for our customers, employees and shareholders. We look forward to adding new products, services and technology for our customers as we move forward.”