Freedom Security owner buying Galesburg, Ill., bank branches

Central Bancshares Inc. of Muscatine has signed a letter of intent to purchase branches of Associated Bank in Galesburg, Ill., through its F&M Bank subsidiary in the western Illinois community.

Central Bancshares is the corporate parent of Freedom Security Bank in Coralville and Kalona, Central State Bank in Muscatine and Wilton, and West Chester Savings Bank in Washington.

Under the purchaase agreement, F&M Bank will assume all of the accounts held at Associated Bank's offices at 50 E. Main St. and 1865 N. Henderson St. in Galesburg. The transaction, which includes about $66 million in deposits and $18 million in loans, is subject to regulatory approval and is expected to be completed during the second quarter of 2012. 

Terms of the transaction were not disclosed.

When the sale is completed, F&M Bank will continue to be the largest community-based bank in the greater Galesburg market, with approximately $143 million in loans, $250 million in deposits, and an estimated 10,000 customers.

Central Bancshares is one of the largest bank holding companies in Eastern Iowa and west central Illinois. It will have over $700 million in consolidated assets and 12 full-service bank locations when the Associated transaction is completed.