MONTICELLO - Bank of Monticello and its branch, Bank of Evansville, are expected to merge with Greenwoods State Bank of Lake Mills by the end of the year, according to Bill McDonald, president and CEO of Greenwoods Financial Group, Inc. Greenwoods State Bank also has a branch in Rio, Wisconsin.
McDonald and Michael Klassy, president of Monticello Bank, announced Sept. 29 they had signed an agreement for Greenwoods Financial to acquire all the outstanding stock of the Bank of Monticello. The banks combined operations would have assets of about $139 million.
"We have been talking with Monticello in earnest since early 2012," McDonald said. "We've known about them for a long time, and known of them."
The agreement comes as both banks struggle under increased regulations.
"In their letter to shareholders, they (Monticello bank) explained it was going to become increasing harder for banks of their size with regulatory burden," McDonald said. The problems are the same for Greenwoods, he added.
The capital levels of both banks are strong, McDonald observed, but the cost of doing business has increased, and both bank entities needed to become more competitive.
Joining forces "helps us do that, and to bring more products and services to the customers," he said.
The final merger is pending the approval of the FDIC and Federal Reserve regulators - anticipated in mid-December - as well as the shareholders of the Bank of Monticello, voting Nov. 15.
Customers of the banks of Monticello and Evansville will probably not see any changes until sometime in February, McDonald said. Current employees will remain, but changes include a name change to Greenwoods, the acquiring entity whose charter will survive.
Otherwise, the changeover will be "extremely seamless to them," McDonald said. "We use the same system to process transactions."
The banks will be able to offer more banking products especially for deposits and loans, McDonald said, and he believes the banks will show a marked increase in their presence in the communities.
The Bank of Monticello has two locations in Monticello and one in Evansville. Greenwoods State Bank has locations in Lake Mills and Rio. The combined bank would be headquartered in Lake Mills. Three current directors of the Bank of Monticello will sit on Greenwoods board of directors.
Greenwoods State Bank is a locally owned, independent community bank, in business since 1883, with customers throughout Dane, Columbus, and Jefferson counties. In September of 2007, Greenwoods Financial Group, Inc., a Wisconsin company, acquired 100 percent of the stock of The Greenwoods Bancorporation, Inc. which owned the Greenwoods State Bank. The Rio branch opened in 2009.
McDonald and Michael Klassy, president of Monticello Bank, announced Sept. 29 they had signed an agreement for Greenwoods Financial to acquire all the outstanding stock of the Bank of Monticello. The banks combined operations would have assets of about $139 million.
"We have been talking with Monticello in earnest since early 2012," McDonald said. "We've known about them for a long time, and known of them."
The agreement comes as both banks struggle under increased regulations.
"In their letter to shareholders, they (Monticello bank) explained it was going to become increasing harder for banks of their size with regulatory burden," McDonald said. The problems are the same for Greenwoods, he added.
The capital levels of both banks are strong, McDonald observed, but the cost of doing business has increased, and both bank entities needed to become more competitive.
Joining forces "helps us do that, and to bring more products and services to the customers," he said.
The final merger is pending the approval of the FDIC and Federal Reserve regulators - anticipated in mid-December - as well as the shareholders of the Bank of Monticello, voting Nov. 15.
Customers of the banks of Monticello and Evansville will probably not see any changes until sometime in February, McDonald said. Current employees will remain, but changes include a name change to Greenwoods, the acquiring entity whose charter will survive.
Otherwise, the changeover will be "extremely seamless to them," McDonald said. "We use the same system to process transactions."
The banks will be able to offer more banking products especially for deposits and loans, McDonald said, and he believes the banks will show a marked increase in their presence in the communities.
The Bank of Monticello has two locations in Monticello and one in Evansville. Greenwoods State Bank has locations in Lake Mills and Rio. The combined bank would be headquartered in Lake Mills. Three current directors of the Bank of Monticello will sit on Greenwoods board of directors.
Greenwoods State Bank is a locally owned, independent community bank, in business since 1883, with customers throughout Dane, Columbus, and Jefferson counties. In September of 2007, Greenwoods Financial Group, Inc., a Wisconsin company, acquired 100 percent of the stock of The Greenwoods Bancorporation, Inc. which owned the Greenwoods State Bank. The Rio branch opened in 2009.