Oregon’s oldest bank has now joined with an even older organization.
Oregon Community Bank and McFarland State Bank announced Monday, Oct. 7, the entities would merge. It would take place in the first quarter of 2020 if federal regulators approve.
The combined organization would have 11 offices, with one each in McFarland, Sun Prairie, Middleton, Waunakee, Adams, Oxford, Grand Marsh, two in Oregon and two in Stoughton.
A joint release announcing the agreement said there are no planned layoffs or staff reductions. It said McFarland State Bank shareholders will become shareholders of Oregon Community Bank.
In January, another growing community bank acquired an Oregon branch when State Bank of Cross Plains took over Evansville-based Union Bank and Trust.
Steve Peotter, who has been president and CEO of Oregon Community Bank since 2011, wrote in the release the move is an opportunity to grow.
“As part of this merger, we will be reinvesting across the board and growing to meet the needs of the communities we serve,” he wrote. “I look forward to leading our combined organizations and welcome the McFarland State Bank team to the family.”
David E. Locke, chairman and CEO of MSB, wrote in the release the combined company would be better poised to expand efficiently as a result of the move.
“The combination allows us to offer additional products, additional lending capabilities and new technologies important to our customers and vital to the future success of thriving community banks like ours,” he wrote.
Oregon Community Bank was established in 1976 and has operated independently in Oregon ever since. It began expanding in 2016 with a mortgage service center in the village, then opened branches in Waunakee, Adams, Oxford and Grand Marsh over the next two years.
McFarland State Bank has had a similar story, operating a single branch from its opening in 1904 until it acquired the shuttered Evergreen State Bank in 2011, expanding from one location to five in the process.
“This merger is an excellent fit for both organizations and will create one of the largest community banks in Dane County with over $1.1 billion in assets,” Locke wrote. “It brings together two locally-run, family-owned banking organizations that have strong, customer-focused staffs and a culture rich in service to the community.”
The release noted local donations made by the two banks over the past year. MSB has donated two former bank buildings, first to the City of Stoughton and then to Stoughton Hospital. OCB last month pledged $100,000 to the Jaycee Park West renovation.
Bosshard Financial Group, Inc., is the holding company for Oregon Community Bank, which has $500 million in assets.
Northern Bankshares, Inc., is the holding company for McFarland State Bank, which also has more than $500 million in assets and has more than 90 employees.