Lone Tree bank in regional merger

An Eastern Iowa bank holding company has expanded to operate 12 locations within a 50-mile radius of Iowa City.

Country Bancorporation of Crawfordsville recently completed the acquisition of Lone Tree Service Co., corporate parent of Farmers & Merchants Savings Bank (F&M) of Iowa City. In addition to the office in Iowa City, F&M has locations in Lone Tree and Nichols.

With the purchase, Don Kout, president and CEO of F&M, retired after 40 years of service. Kenneth Bagge was appointed interim president and CEO while a search is conducted to fill the vacancy.

Bagge has about 24 years of banking experience with F&M, most recently as controller and trust officer. F&M will continue to operate as an independently chartered community and all employees have been retained.

With the purchase of Lone Tree Service Co. and its affiliate F&M, Country Bancorporation owns eight banks with 12 locations and assets of approximately $365 million.

The other seven banks in the group are Walker State Bank, Walker; Hiawatha Bank & Trust Co., Hiawatha; Center Point Bank & Trust Co., Center Point; Exchange State Bank, Springville; Peoples Trust & Savings Bank, Riverside; Peoples Savings Bank, Crawfordsville; and White State Bank, South English.