MidWestOne Bank acquires First National Bank

FAIRFIELD – Two thousand and twenty-two has been a watershed year for MidWestOne Bank, which just completed the acquisition of First National Bank, with offices in Fairfield and Muscatine.

The two banks announced their plan to merge in the fall of 2021, and by early June 2022, the deal had received all regulatory approvals and was therefore complete. This merger meant that First National Bank in Fairfield transitioned to become MidWestOne Bank on July 25. Luckily, it was an easy move for MidWestOne Bank employees, who just had to cross Court Street into their new offices.

Peggy Hudson, senior vice president of marketing with MidWestOne Bank, said her company sought the merger because of the two banks’ shared values, similar Iowa banking histories and their community focus.

“Because MidWestOne already does business in Fairfield, we understand the needs of our community,” Hudson said. “Joining First National Bank with a larger institution enables the bank to introduce and maintain the solutions and ease of banking that clients increasingly demand. With this merger, MidWestOne Bank has become the largest bank headquartered in Iowa.”

MidWestOne Bank announced its desire to move into the First National Bank building due to that building’s drive-through, ATM, handicap accessibility and additional parking. The company has two locations in Fairfield, but plans to close the branch on the west edge of town, located at 2308 W. Burlington Ave., on Aug. 25.

Hudson said COVID-19 created new demand for banking technology, with customers increasingly using online and mobile banking, Zelle, and other financial technology to transact their banking business.

“Having a second branch available less than two miles away from the main branch doesn’t make economic sense when the First National Bank office provides the conveniences customers expect. It’s a win-win for all,” Hudson said.

The building at 2308 W. Burlington Ave. was built in 2000, and included drive-up windows to meet the growing demand for those services.

Hudson said MidWestOne Bank will employ 18 people in Fairfield, and just under 800 across all its offices. The bank has grown to 57 branches in states such as Iowa, Minnesota, Wisconsin, Colorado and Florida.

“Our employees are our greatest strength,” Hudson said. “In 2021, for the ninth consecutive year, MidWestOne’s Iowa franchise was recognized as a ‘best workplace’ by the Des Moines Register. Only 150 Iowa businesses receive this designation, which is awarded after an anonymous survey of our employees.”

Hudson said the bank’s financial services professionals are excited to expand their operations in Iowa with enhanced services, a larger set of solutions, and a deeper team of banking experts.

“An expanded branch network, increased lending and deposit capacities, more dig¬ital options, and a larger wealth management team are examples of the value our combined companies will provide our customers and communities,” she said. “We are a larger company but continue our commu¬nity banking values—investing in our customers, employees, and communities.”

MidWestOne Bank markets itself as a “community bank,” which means its employees need to have a deep knowledge of the towns they serve to accommodate the needs of individuals, businesses, and agri-businesses.

“Our goal is to operate at the intersection of Main Street and Wall Street in every community we serve,” Hudson said. “From baby’s first savings account to first-time home buyer’s loans to SBA loans and treasury management services and commercial real estate loans, we try to set ourselves apart through our culture of quality and commitment.”

Bank history

MidWestOne Bank was founded in Iowa City in 1934, though at that time it was known as Iowa State Bank and Trust.

Hudson recounted the early history of the bank:

“An adventurer and entrepreneur at heart, Ben Samuel Summerwill moved his family from Iowa to South Dakota in 1916, with the dream of running a successful cattle ranch. At that time, South Dakota still was ‘the Wild West’ complete with cattle roundups and branding, and Summerwill served as a deputy sheriff in Pierre, outfitted with chaps, horse and six-shooter. By 1929 and in the grip of the Great Depression, despite hard work by Summerwill, wife Edna and children Bill and Betty and Ben, he had lost the ranch.

“This led to him returning to Iowa City, as an employee of the Iowa State Banking Department, to liquidate five banks that had failed due to the depression. Summerwill had prior experience as a bank examiner, but perhaps what prepared him best for this tough job was his own experience starting and losing a business.

“This experience gave him a perspective on how to deal with people. He had lost his money, so he could empathize with others who had experienced the same. As the examiner in charge of these failed banks in the Iowa City area, he took the unusual step of loaning money out of a closed bank to help people get going again. So, as a result of the way he went about accomplishing his work, Summerwill was called on by people in the community to start a new bank in 1934 to provide some competition for the only remaining bank in town. Iowa State Bank & Trust Company was incorporated on October 8, 1934, with deposits of more than $368,000. While the name of the bank has changed to MidWestOne Bank, it still operates under the same charter founded in 1934, and in the same historic location on the corner of Clinton and Washington Streets in Iowa City, Iowa.

“In 1984, ISB Financial Corp. was established as a closely held bank holding company for Iowa State Bank & Trust Company. In March 2008, ISB Financial merged with MidWestOne Financial Group and took MidWestOne as the name of the company.

“In May 2015, the bank acquired Central Bancshares of Golden Valley, Minnesota, which had bank offices in Naples and Fort Myers, Florida. It opened its first branch in Denver, Colorado in 2017, and in 2019 it acquired ATBancorp with offices in Dubuque, Dyersville, Des Moines, and Farley, Iowa; and Cuba City, Hazel Green, Platteville, Fennimore, and Lancaster, Iowa. In June, 2022, MidWestOne acquired Iowa First Bancshares, Inc., with offices in Fairfield and Muscatine, Iowa.”

Call Andy Hallman at 641-575-0135 or email him at andy.hallman@southeastiowaunion.com