Northwest Bank will purchase four Bank of America locations in Iowa - including those in Fort Dodge and Algona - pending regulatory approval.
Under an agreement announced Tuesday, Northwest Bank will also acquire Bank of America branches in Spencer and Estherville.
For consumers, that means "if you are a Bank of America customer today, you will be a Northwest Bank customer," said John Taets, Fort Dodge-based Northwest Bank regional president.
Customers will receive a letter providing additional details regarding their accounts.
"We've experienced some wonderful growth in Iowa," Taets said, "We're an Iowa-based company. For us to continue to expand in the markets we serve, Bank of America was a great fit - not only for us in Fort Dodge, but for Algona, Estherville, Spencer and ... Sioux City."
First National Bank of Sioux City, a sister bank of Northwest Bank, owned by Northwest Financial Corp., is acquiring a Bank of America branch in Sioux City.
Northwest Bank has existing locations in the communities where it is purchasing the Bank of America branches.
"It's exciting because of the fit, the location, the facilities themselves" and especially so in Fort Dodge, Taets said, because it means Northwest Bank will have a presence on the downtown corridor.
Northwest Bank will continue to operate at 10 N. 29th St., but will have a second location in what is now the Bank of America branch at 723 First Ave. S., as it assumes the lease there.
"We're looking forward to the proposed changes on the corridor in the coming months," he said.
Northwest Bank expects to complete the purchase in August, and all Bank of America staff will be retained, Taets said.
"Retaining the staff keeps that continuity within the bank," he said.
"We're going to continue to do and expand on what Northwest Bank does well," Taets said. "When you look at Northwest Bank, we're a full-service community bank. We have the products from commercial to ag to retail to mortgage, and we're going to continue to do those well."
In addition, Taets emphasized the involvement of Northwest Bank personnel within the local community and the bank's level of philanthropic giving.
"We believe in giving back to the communities; we've been a good corporate citizen," he said. "We look forward to integrating the Bank of America staff with ours and continuing to be a good corporate citizen."
In a prepared statement, Greg Post, president and chief executive officer of Northwest Bank said, "Northwest Bank is experiencing some very exciting growth. With our recent acquisition of Liberty Bank branches in Spirit Lake and Arnolds Park ... and our upcoming purchase of Bank of America branches in Spencer, Algona, Fort Dodge and Estherville ... we are confident in the process we take to determine acquisition opportunities that fit our long-term commitment of our company to community banking.
"These growth opportunities continue to support our strategic plan of growing in areas that we are familiar with and to continue to provide safe and secure financial products and services. Northwest Bank has local ownership that is truly committed to our customers, employees and supporting the communities we serve," Post said.
About Northwest Bank
Northwest Bank operates 19 banking locations in Iowa and Nebraska with assets of more than $960 million. As a community bank, Northwest Bank services agricultural, business and consumer markets and is one of the area's leading mortgage lenders. In 2011, Northwest Bank was selected as the Iowa Community/Rural SBA Lender of the Year in Iowa.
About Northwest
Financial Corp.
Northwest Financial Corp., located in Arnolds Park, is owned by Neal and Dwight Conover and their families. Northwest Financial Corp. operates three charters: Northwest Bank, based in Spencer, with 19 bank locations; First National Bank, based in Creston, with three bank locations; and First National Bank, based in Sioux City, with five locations.
Contact Barbara Wallace Hughes at (515) 573-2141 or bwh@messengernews.net