F&M BANK SOLD

A century-plus tradition is about to come to an end in Blooming Prairie.
Farmers and Merchants State Bank has been sold to an Iowa financial institution, bringing an end to 117 years of family ownership of the independent bank. The sale also includes F&M’s Austin branch and Citizens State Bank of Hayfield with branches in Hayfield, Dodge Center and Mantorville.
MBT Bank of Forest City announced late Friday it has entered into an agreement to acquire the banks. The sale, pending federal approval, is expected to close in September.
In making the announcement, Dennis Busta, president and CEO of MBT Bank, said, “For over 75 years, we have served our communities and customers the way F&M and CSB have. We are excited to have these two family-owned banks and their employees become part of MBT Bank.”
F&M Bank President Jim Fiebiger, who has worked at the Blooming Prairie location since 1983, said, “Our identical banking philosophy will provide more and better banking products for our customers, but will also maintain the local, friendly banking environment our customers have grown accustomed to.”
Mark Miedtke, president of CSB, said the sale is a great opportunity for the banks, staff and communities to move forward. “Like MBT Bank, our dedicated employees take pride in offering personal customer service,” he said.
MBT Bank, which celebrated its 75th anniversary last year, has branch offices in Forest City, Clear Lake, Lake Mills  Rochester.
CSB has assets of $130 million, while F&M has assets of $110 million. Upon the closing of the sale, MBT Bank will have total assets of $680 million.
F&M has been a fixture on Blooming Prairie’s Main Street since 1904 when Oscar Habberstad led a group of individuals in opening the bank. The bank has been housed in several downtown locations. It moved to its current location at 245 E. Main St., in 1981. The Austin branch was built in 1998.
Both the Blooming and Hayfield banks are owned by a holding company, family-owned Country Bankers Inc.
For years, F&M has been a strong agricultural lending institution with 50% of its loans going to agriculture. All five loan officers of F&M have agricultural production experience and three are still actively farming.
In an interview five years ago, Fiebiger said, “The key is that we can walk the walk and talk the talk” about agricultural needs. “We understand what the farmer needs and when they need it,” he said, adding loans are the “bread and butter of F&M” and it’s a process made easier by the professional loan officers who are involved.
Looking at bank statistics, Fiebiger said the bank now has $110 million in assets compared to $29 million in 1983 when he came on board.
F&M has been very active in the community over the years. It has achieved three recipients of the Minnesota Jaycees Outstanding Young Minnesotan award.
Some of the more recent community support has included the Blooming Prairie Cancer Group and the Blooming Prairie Education Foundation. Bank officials have clerked for both auctions.
A few years ago, F&M donated $25,000 to the Blooming Prairie Veteran’s Memorial.
Terms of the sale have not been disclosed. In addition, no information has been released on how the new company will staff the bank. F&M has about 21 employees in both locations.
In addition to being bank president, Fiebiger currently serves as president of the Blooming Prairie Area Chamber of Commerce.
 
BANK SALE AT GLANCE
• MBT Bank of Forest City has purchased F&M Bank of BP and Citizens State Bank of Hayfield
• F&M assets- $110 million; CSB assets- $130 million; After sale, MBT assets- $680 million
• Terms not disclosed
• Sale pending federal approval
• Expected to close in September