The owner of American Bank, which has four Grant County locations, has been purchased by an Iowa City, Iowa banking company.
ATBancorp of Dubuque, which owns American Bank & Trust--Wisconsin and American Trust & Savings Bank, is becoming part of MidWestOne Financial Group, owner of MidWestOne Bank.
The purchase, reported at $170.3 million — 75 percent in stock and 25 percent in cash — by the BankBeat website, was finalized Jan. 2. The Schrup family, which owns ATBancorp, will own one-fourth of MidWestOne, but the former American Bank and American Trust offices will become MidWestOne offices.
ATBancorp had about $1.4 billion in assets. MidWestOne had $3.3 billion in assets when the sale was announced in August.
“In Southwest Wisconsin, we anticipate continued growth and success within all sectors of business, and we look forward to writing an exciting new chapter with MidWestOne Bank,” said Kevin Raisbeck, president and CEO of American Bank & Trust.
“It is significant to our shareholders that we are merging with an Iowa-based company,” said Nicholas Schrup III, chairman and president of ATBancorp. “ATBancorp has determined that best way for its banks to continue to grow in our over-banked and highly competitive markets is by leveraging additional capital and resources from outside of our current footprints. The proximity of Iowa City to the Tri-States and Des Moines makes operations in all ATBancorp locations manageable. The shared community-banking values of both organizations make this merger a complimentary match.”
“We are very pleased and delighted that ATBancorp has agreed to join with MidWestOne, creating one of the premier banking franchises headquartered in Iowa,” said Charles Funk, president and CEO of MidWestOne. “ATBancorp has a rich heritage in one of Iowa’s finest cities. For over a century their company has evolved, extending their brand to the Dyersville area west of Dubuque, to Southwest Wisconsin and westward to Des Moines. We are appreciative of the excellence ATBancorp has shown in taking care of their customers and we envision a solid melding of our similar cultures.”
A MidWestOne news release said that the market presidents, including Raisbeck, are “community bankers who will be responsible to lead these markets in the future.”
American Trust dates back to 1911, when Dubuque business people started the German American Savings Bank. Nicholas J. Schrup was its first president.
ATB purchased Cuba City State Bank in 1998. Cuba City State Bank started as The Farmers Bank, a private bank, in 1896, and became a state-chartered bank in 1903, changing its name to Cuba City State Bank in 1910. CCSB purchased First National Bank in Cuba City in 1928. Its Hazel Green location opened in 1936. American Bank opened offices in Lancaster in 2001, Fennimore in 2002, and McGregor Plaza in Platteville in 2006.
MidWestOne, the fifth largest banking company in Iowa, dates back to 1934, when Iowa State Bank & Trust Co. opened in Iowa City. ISB Financial, the holding company of Iowa State Bank & Trust and First State Bank, merged with MidWestOne, based in Oskaloosa, Iowa, in 2008 and adopted the MidWestOne name.
MidWestOne’s Wisconsin locations are in Hudson, North Hudson, Osceola and St. Croix Falls. MidWestOne also has locations in Iowa, Minnesota, Denver, Colo., and Fort Myers and Naples, Fla. The purchase gives MidWestOne entry into American Trust’s Dubuque and Des Moines markets.
According to BankBeat, MidWestOne was one of nine potential buyers of ATBancorp.
The sale required ATBancorp to sell its retirement planning business, which had more than $1.6 billion in assets, and its insurance business. MidWestOne initially offered $185 million for ATBancorp, increased its bid to $201.7 million, then reduced the bid after deciding not to acquire the retirement planning business and “certain related assets.”
