Archive for Wednesday, January 11, 2006

Local investors buying Overbrook bank

January 11, 2006

A group of investors associated with First State Bank and Trust in Tonganoxie is buying First Security Bank in Overbrook.

The acquisition should be complete in late February or early March, according to Kent Needham, president and chief executive officer of First State Bank.

The move was attractive to First Security because it will offer additional banking resources, including the potential for making larger commercial and agricultural loans to its customers.

"First State Bank and Trust received the first Community leader Award in 2005 from the Federal Home Loan Bank of Topeka as recognition for the way they work with their customers to identify and meet needs," said Randy Durbin, president of First Security. "I am looking forward to working with this group of bankers who will help position our bank to continue to successfully serve the community for many years to come."

First Security Bank, which as chartered in 1897, serves residents in Osage, Douglas, Franklin and Shawnee counties. The bank's name will not change.

"Everything goes on, business as usual," Needham said.

And the entire bank staff will retain their current positions with the bank in the Overbrook community, which is in Osage County, about 22 miles southeast of Topeka on U.S. Highway 56.

"We are excited to partner with a bank that is so strong and well-capitalized; and whose employees are committed to providing excellent financial products and personalized customer service to the community they serve," Needham said.

Needham said the group purchasing First Security is led by First State Bank and Trust's parent company.

"The majority owner of First Security Bank would be Tonganoxie Bankshares, which is the parent holding company of First State Bank and Trust," he said. "It's considered an affiliate because our holding company owns more than 50 percent of their holding company."

The purchase is pending regulatory approval, and applications for the ownership change were filed recently with state and federal regulators.

First State Bank and Trust is an independent community bank that offers six locations in northeast Kansas and two in the Wichita area. It has been in existence since 1934 and has been owned by the same group of investors since 1979.

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