CBI Bank and Trust

History

The story of CBI Bank & Trust actually consists of the history of four banks — Central State Bank, Freedom Security Bank, West Chester Savings Bank, and Buffalo Prairie State Bank — that came together to form the organization.

Central State Bank

Central State Bank's history can be traced to the mid-nineteenth century, a time when "private banks" — those not open to the general public — were the norm. The private banking house of Isett and Brewster of Muscatine was one of the earliest of this type in Iowa and operated successfully for a number of years. On May 1, 1865, it was converted to a state-chartered institution, Merchants Exchange Bank, which was opened to the general public. Later that year, conversion to a national charter brought a change in name to Merchants National Exchange Bank.

In the early years, it was not unusual for banks to operate under two charters, one national and one state, with both institutions located in the same building and owned by the same stockholders. Nationally chartered banks traditionally catered to the needs of businesses and they could issue their own bank notes, which served as currency in the absence of today's Federal Reserve Notes. By contrast, state-chartered institutions emphasized serving individuals and families by accepting savings deposits and making loans for personal and home financing. In 1880, state-chartered Muscatine Savings Bank was organized for the purpose of serving the community in tandem with Merchants Exchange National Bank.

During the intervening years, this dual-bank organization continued to grow. There were a couple of name changes along the way: in 1886, Merchants National became the First National Bank of Muscatine (no relationship to the present-day entity of the same name), and in 1907, Muscatine Savings Bank changed its name to the First Trust and Savings Bank of Muscatine. The year 1933 brought a combining of banking interests into a single operating unit, a new state charter, and a change in name to Central State Bank.

From the 1930s through the 1990s the bank operated primarily in the Muscatine trade area and developed a reputation for leadership. It was among the first banks in Iowa to offer a sidewalk/walkup teller with extended hours for customer convenience (1957); the first bank in Muscatine to offer drive-up banking; the first to open an office on the community's north side (Park Avenue Banking Center, 1971) and the first to branch into the south side (Grandview Avenue Banking Center, 1977). It launched the area's first banking affinity group, the Ambassador Club (1988), and it was the first to offer in-store banking (Econofoods, 1990). It was also among the first in the area to offer ATM services, debit cards, online and mobile banking.

In 2005, the bank branched beyond Muscatine for the first time, opening an office in Wilton, Iowa. In July, 2013, two affiliate banks, Freedom Security Bank (with locations in Coralville, Iowa and Kalona, Iowa) and West Chester Saving Bank (located in Washington, Iowa) were merged into the organization, but continued to operate under their former names as offices of Central State Bank. On April 1, 2015, the bank's parent company, Muscatine-based Central Bancshares, Inc., acquired Buffalo Prairie State Bank, Buffalo Prairie, Illinois and merged it into the organization, and began operating it under its former name as an office of Central State Bank.

On September 1, 2015, Central State Bank changed its name to CBI Bank & Trust and brought all of its banking centers together under a single name, logo and brand.

Freedom Security Bank

Freedom Security Bank was founded in 1899 as Farmers Savings Bank in Kalona, Iowa. It had a legacy of strong family leadership and commitment to the community through the Skola family, dating back to Fred Skola, Sr.’s employment with the bank in 1903. Three generations of the family served as President prior to the sale of the institution to Central Bancshares, Inc., in 1994.

In 2002, the bank expanded beyond the Kalona market, building a new facility at 1st Avenue and Holiday Road in Coralville, Iowa. It concurrently changed its name to Freedom Security Bank to reflect its broadened scope of operations.

In mid-2014, the bank was merged into Central State Bank, Muscatine, Iowa. It continued to operate under its former name, as an office of Central State Bank, until September 1, when all Central State Bank offices were combined under the same name and branding of CBI Bank & Trust.

West Chester Savings Bank

West Chester Savings Bank was incorporated March 6, 1900 and the organization’s first building was constructed shortly thereafter in the village of West Chester, Iowa. It opened its doors for its first day of business on July 16, 1900.

The bank enjoyed steady growth over the years. A very notable characteristic is that it never closed its doors in the 1930s during the Great Depression.

In 1948, controlling interest in the bank was sold to A.R. Wolf, his son Calvin C. Wolf, and son-in-law John Butler. In 1985, Farmers Savings Bank of Kalona purchased a controlling interest from the major stockholders and continued to operate the institution as a separate, independent entity.

In 1994, the bank was sold to Central Bancshares, Inc. of Muscatine, Iowa and in 1995, the bank charter was moved to Washington, Iowa, where a temporary bank office was leased while construction began on a 2,500 square foot permanent banking facility, which opened for business in March, 1997. In April, 2002, the West Chester facility was consolidated into Washington Banking Center and in 2005, work was completed a 4,000 square foot addition constructed to accommodate continued growth of the organization.

In July, 2014, the bank was merged into Central State Bank, Muscatine, Iowa. It continued to operate under the name West Chester Savings Bank, as an office of Central State Bank, until September 1, 2015, when all Central State Bank offices were combined under the same name and branding of CBI Bank & Trust.

Buffalo Prairie State Bank

Buffalo Prairie State Bank, located in Buffalo Prairie, Illinois, was chartered in September, 1920. Over the years it developed an excellent reputation serving the banking needs of western Rock Island County, Illinois. Growth was steady and at year-end 2014 total assets were over $71 million.

The bank was purchased by Central Bancshares, Inc., on April 1, 2015 and concurrently merged into Central State Bank, Muscatine, Iowa. It continued to operate under its former name, as an office of Central State Bank until September 1, 2015, when all Central State Bank locations were combined under the same name and branding of CBI Bank & Trust.

Ownership

CBI Bank & Trust is a wholly owned subsidiary of Muscatine-based Central Bancshares, Inc., which also owns F&M Bank in Galesburg, Illinois. Collectively, the holding company has approximately $850 million in total assets and serves an estimated 40,000-42,000 consumer households and businesses through thirteen full-service banking locations in east-central Iowa and west-central Illinois. Stock in the organization is closely held and not actively traded. A majority of the outstanding shares are owned by individuals who either live in or are connected to the Muscatine, Iowa area.

Scope of Operations

The bank's primary market area consists of Muscatine County, Iowa, Washington County, Iowa, Johnson County, Iowa, western Scott County, Iowa, and western Rock Island County, Illinois. It serves individuals, families and businesses in this trade area through nine full-service locations: three in Muscatine, Iowa, and one each in Coralville, Iowa, Davenport, Iowa, Kalona, Iowa, Washington, Iowa, Wilton, Iowa and Buffalo Prairie, Illinois.

Over the years, the bank has consistently been one of the largest financial institutions in its home market of Muscatine County, Iowa. Local deposit market share has traditionally been in the high 20% to low 30% range, with slight variations from year to year.

Products & Services

CBI Bank & Trust offers a full range of banking products and services including checking, savings and money market accounts; CDs, IRAs and related investments; personal, auto, consumer and home equity loans; conventional, insured and first-time homebuyer mortgages; business, commercial and ag loans; commercial deposit and cash management products; remote deposit capture and merchant processing services; online banking, online bill pay, mobile and telephone banking services; ATM, debit, credit, HSA and gift cards; automated teller machines, drive up and night deposit services; stocks, mutual funds, annuities and investment advisory services (through its affiliate, CBI Investment Services); and trust services.

It hosts several bank clubs, most notably the Ambassador Club, open to customers age 50 and better with qualifying banking relationships, and the Mini-Millionaires Club, developed to help children age 12 and under develop good savings and money habits.

Access to banking services is available Monday through Friday at its Davenport location and Monday through Saturday at all of its other locations except for the Hy-Vee Super Bank, located in Muscatine's Hy-Vee Supermarket, which is open seven days a week.

Community Involvement

The organization places a high priority on good corporate citizenship in the form of community involvement and philanthropic efforts. Bank officers serve in leadership capacities, on boards, and on committees for a wide range of organizations in its trade area. Employees are encouraged to volunteer their time and efforts to local civic and charitable causes.

Charitable giving is consistent, significant, and encompasses both traditional corporate donations as well as some unique approaches to funding. Nontraditional programs include Muskie Mania (over $100,000 to Muscatine High School since 1995); Beaver Nation (over $33,000 to Wilton High School since 2006); Demon Mania, Golden Hawk Pride and Rocket Nation (newer sports-related donation programs in Washington, IA, Kalona, IA, and Rock Island County, IL, respectively); and Hometown Hundreds (over $50,000 in weekly $100 donations to a wide variety of local charities and programs, which can be nominated by the general public).

Memberships & Affiliations

Bank affiliations include membership in the American Bankers Association, the Iowa Bankers Association, the SHAZAM electronic funds transfer network, the National Automated Clearing House Association (NACHA), the Federal Deposit Insurance Corporation, the Federal Reserve System, and the Federal Home Loan Bank System.