Two banks, one name, no little confusion
Monday, June 17, 2013 2:37 PM
Security State Bank has agreed to buy Security State Bank in a deal that could eliminate some brand confusion in Central Iowa, according to American Banker.
There are nearly 7,000 banks in the United States, so some overlap should be expected with names. It also stands to reason that, with the potential for consolidation, that some of the banks would cross paths.
Such is the case with Security State Bank in Radcliffe, which has reached a deal to buy Security State Bank in nearby Hubbard. The banks did not disclose the deal's financial terms.
The merger has its fair share of pros and cons, said Bryan Drake, president of the $58 million-asset Radcliffe bank. "It might get confusing."
State examiners in Iowa reviewing the deal could be excused if they get addled. There are four other Security State Banks in Iowa, plus a First Security State Bank in Evansdale.
Federal Deposit Insurance Corp. regulators could also become disoriented. There are 34 Security State Banks nationwide, plus a Security State Bank & Trust and a First Security State Bank, both in Texas. Read more.