Officials with two area banks, including Platte Valley Bank, are confident an upcoming merger will be a smooth transition since the two companies share so much in common.
Both Platte Valley Bank, a major Platte County presence since the early 20th century, and Central Bank of the Midwest, based in Lee’s Summit, have strong familial ties and long traditions in the Kansas City area, officials said.
Central Bancompany Inc., the holding company for Central Bank of the Midwest, is to merge the two banks next spring.
Platte Valley Bank started as Waldron State Bank in tiny Waldron in Platte County in 1906, said Susan Baker, executive vice president and marketing director.
The bank moved to Dearborn during the 1930s and has changed names several times and opened new locations throughout its more than 100-year history, she said.
Platte Valley Bank currently has nine area locations. The bank’s main office maintains its long-standing ties with a main branch in Platte City.
Bill Ferguson, president and chief executive officer of Central Bank of the Midwest, said the history and personal service is not lost on the public.
“People love Platte Valley Bank,” he said.
Central Bancompany will acquire Platte Valley for an undisclosed amount in a deal that requires approval by shareholders and bank regulators before being finalized.
Central Bank of the Midwest got its start in Jefferson City in 1902 and has been owned by the Cook family for four generations, Ferguson said.
Conversely, Phene and Gerri Skinner, residents of Camden Point, started Platte Valley Bank in 1906, said Doug Gutshall, regional president and co-chief executive officer of Platte Valley Bank.
Gutshall has been with the bank for 40 years and said he expects to stay on after the merger.
Ferguson said the transaction will mark only the second time in Central Bancompany’s history that it acquired a bank in the Northland. The first was when Central acquired BankLiberty earlier this year for $103.7 million.
The two latest acquisitions demonstrate Central’s desire to be a presence in the Northland, he said. Central, with $2.9 billion in assets, is the Kansas City area’s fifth largest community banking organization, Ferguson said.
“We’re very excited about it. What that allows us to do is expand our footprint in the Northland,” he said.
Platte Valley Bank, which has about $600 million in assets and about 180 employees, has consistently been named to the list of the area’s strongest mid-sized banks by the Kansas City Business Journal, according to an article in the publication.
Gutshall said the fate of the bank’s employees will be determined later, but the goal is to retain employees. He said employee positions will be determined closer to the merger date.
The history of Platte Valley Bank was mentioned in a press release.
“We purchased First State Bank of Dearborn, Missouri (Platte Valley Bank) in 1976 from the Skinner family,” said E.L. Burch, vice chairman of Platte Valley Bank.
“We are proud of what PVB has become and how it has given back to the community in the past 43 years. We are pleased to turn it over to a great organization like Central Bancompany. We believe they will carry on our traditions and commitment to our community.”
At the transaction’s conclusion, Central Bank of the Midwest will have combined assets of $2.9 billion and $2.4 billion in deposits, according to an article in the Kansas City Business Journal.
Central Bancompany is a Jefferson City-based bank holding company with more than $13 billion of assets in 13 full-service community banks that operate more than 250 locations in 78 communities in Missouri, Kansas, Colorado, Illinois and Oklahoma, according to the Kansas City Business Journal.
In the release, Ferguson summed up the acquisition saying it “will combine nearly 300 years of demonstrated financial strength and community spirit to the Northland. We’re looking forward to what we’ll do together in the next 100 years.”