Kerndt Brothers buying 2 northeast Iowa branches

Kerndt Brothers Bank, a century-old northeast Iowa financial institution, is purchasing two branch offices from Fidelity Bank & Trust of Dyersville.

Lansing-based Kerndt Brothers will expand to seven locations with the acquisition of Fidelity Bank's offices in Decorah and Waukon. The branches will begin operating as Kerndt Brothers Bank on Nov. 23, subject to state and federal regulatory approval.

Kerndt Brothers Bank also has offices in Cedar Rapids, Clermont, Harpers Ferry and West Union. The bank had assets of $236 million on March 31, according to data from the Federal Deposit Insurance Corp.

James Kerndt, president and CEO of Kerndt Brothers Bank, said the bank is pleased to be entering the Decorah and Waukon markets.

'Our company has been a very active community partner in Waukon for over 30 years, contributing to numerous capital campaigns in that area,” Kerndt said. 'I also have personal ties in the Decorah community and have a deep rooted love of that community as well.

'This seems to be a natural next step for our organization and fits well with our long-term strategic direction.”

Fidelity Bank & Trust opened the Waukon branch in 2002 and the Decorah location in 2006.

'Fidelity has been a great partner throughout this transaction,” Kerndt said. 'We could not be more impressed with their leadership and employees.”

Kerndt Brothers Bank traces its history to 1856 with the opening of a broom factory and general store. Farmers left cash in the safe at the back of the store, which constituted the first deposits in the Kerndt Brothers Savings Bank.

In 1908, the Kerndt Brothers' private bank became incorporated as a state bank.