CBI Bank & Trust
| Company type | Subsidiary |
|---|---|
| Industry | Banking |
| Founded | 1865 (as Merchants Exchange Bank) |
| Headquarters | Muscatine, Iowa , United States |
Area served | East-Central Iowa, West-Central Illinois, and near Illinois/Wisconsin border |
| Products | Financial services including checking and savings accounts, loans, mortgages, investment and trust services |
| Owner | Central Bancshares, Inc. |
Number of employees | 250+ (2021) |
| Parent | Central Bancshares, Inc. |
| Website | www |
CBI Bank & Trust, previously known as Central State Bank, is a community bank based in Muscatine, Iowa. It functions as a subsidiary of Central Bancshares, Inc., boasting assets totaling over $1.45 billion and employing more than 250 staff members. By 2021, the institution catered to upwards of 45,000 households and businesses through a network of 23 branches alongside multiple digital platforms. Its Trust and Investment departments oversee nearly $1.4 billion in client-managed assets.
The bank maintains branches across Iowa—in Coralville, Buffalo, Davenport, Kalona, Muscatine, Walcott, Washington, and Wilton—as well as locations in Illinois including Brimfield, Buffalo Prairie, Galesburg, Joy, Moline, Monmouth, Peoria, Roscoe, and one branch in Beloit, Wisconsin.
History
The evolution of CBI Bank & Trust represents the amalgamation of several banking institutions over an extended period.
CBI Bank & Trust (formerly Central State Bank)
Central State Bank traces its origins back to 1865 when it was established as Merchants Exchange Bank in Muscatine, following its transformation from the private banking enterprise Isett and Brewster. Subsequently, it adopted a national charter and was renamed Merchants National Exchange Bank. Historically, it was common to operate both state and national charters simultaneously to address distinct customer segments—national banks primarily served commercial clients while state-chartered banks like Muscatine Savings Bank (founded in 1880) focused on individual customers.
This dual-bank approach underwent changes with various renamings: Merchants National became First National Bank of Muscatine in 1886; meanwhile, Muscatine Savings evolved into First Trust and Savings Bank of Muscatine in 1907. Simon Casady held the presidency from 1909 until 1925. In 1933, these two entities consolidated under a newly issued state charter to form Central State Bank.
Between the 1930s and the 1990s, Central State Bank grew its presence within Muscatine by introducing innovative services such as extended-hour walk-up teller windows (1957), drive-up banking lanes, branch openings on Park Avenue (1971) and Grandview Avenue (1977), affinity programs like the Ambassador Club (1988), in-store banking (1990), as well as deploying ATMs, debit cards, and digital banking platforms.
Geographic growth outside Muscatine commenced in 2005 with the establishment of a branch in Wilton. The bank further expanded by merging with Freedom Security Bank (serving Coralville and Kalona) and West Chester Saving Bank (Washington) in 2013; acquiring Buffalo Prairie State Bank in Illinois (2015); integrating MidwestOne Bank’s Davenport branch (2016); absorbing Walcott Trust and Savings Bank (2020); incorporating F&M Bank of Galesburg Illinois (2021), which continues to operate under its original name as a division; acquiring SENB Bank from Moline Illinois with $340 million in assets and six offices (2023); and adding Farmers-Merchants Bank’s Joy branch in Illinois in early 2024.
On September 1, 2015, Central State Bank transitioned its brand identity to CBI Bank & Trust, uniting all affiliated branches under a single brand name.
Freedom Security Bank
Founded originally as Farmers Savings Bank in Kalona, Iowa in 1899, Freedom Security Bank benefited from longstanding leadership by the Skola family beginning in 1903. Three successive generations served as presidents before the institution was acquired by Central Bancshares, Inc. in 1994.
In 2002, the bank broadened its footprint beyond Kalona by inaugurating a new location in Coralville and adopted the name Freedom Security Bank to better represent its expanded service area.
By mid-2014, it merged into Central State Bank based in Muscatine but retained its name until September 1 when all branches were consolidated under the CBI Bank & Trust banner.
West Chester Savings Bank
Established in 1900 in West Chester, Iowa, West Chester Savings Bank notably remained operational throughout the Great Depression.
In 1948, ownership shifted to A.R. Wolf and his family. Then, in 1985, Farmers Savings Bank of Kalona acquired a controlling interest but allowed the bank to continue functioning autonomously.
The institution was sold to Central Bancshares, Inc. in 1994. Its charter was relocated to Washington, Iowa in 1995, followed by the opening of a new facility in 1997. After consolidating operations into the Washington Banking Center in 2002, a 4,000-square-foot expansion was completed in 2005 to accommodate growth.
In July 2014, it merged with Central State Bank but retained its original name until September 1, 2015, when all Central State Bank branches were rebranded as CBI Bank & Trust.
Buffalo Prairie State Bank
Buffalo Prairie State Bank, founded in Buffalo Prairie, Illinois in 1920, earned a solid reputation serving western Rock Island County. By the end of 2014, its total assets surpassed $71 million.
Central Bancshares, Inc. acquired the bank on April 1, 2015. It subsequently merged into Central State Bank and operated under that name until September 1, 2015, when all branches unified under the CBI Bank & Trust brand.
Walcott Trust and Savings Bank
Formed on May 20, 1931 during the Great Depression through the merger of Walcott Savings Bank (established 1893) and Farmers Savings Bank (founded 1904), Walcott Trust and Savings Bank came under the Werner family’s control in 1949—a family involved since the banks’ inception. The bank fostered community development by expanding staff and upgrading facilities, which included adding drive-up services and multiple building enlargements. A significant renovation took place between 1998 and 1999. In June 2014, WTSB launched its first branch at Paul Revere Square in Davenport, Iowa.
Central Bancshares, Inc. acquired WTSB in December 2019 and completed its integration into CBI Bank & Trust by June 2020.
F&M Bank
Founded in Galesburg, Illinois in 1869 by Chauncey Colton, Farmers and Mechanics Bank (F&M Bank) initially operated out of the Union Hotel to meet local deposit and lending demands.
The bank later became part of Minneapolis-based Marquette banking group and was renamed Marquette Bank Illinois. It introduced drive-up service in 1969 and constructed a new downtown Galesburg building in 1979. In 1989, it opened the community’s first full-service branch open seven days a week and expanded beyond Galesburg with additional branches including Peoria, relocating offices through 2006.
Central Bancshares, Inc. reacquired the Galesburg locations in 2002 and reinstated the F&M Bank name. Growth continued with a new branch on North Henderson Street (2004), acquisition of Associated Bank’s Galesburg offices (2012), purchase of Brimfield Bank (2016), and opening of Seminary Square branch (2018).
F&M Bank merged with CBI Bank & Trust in February 2021 but continues to operate under its own name as a division. A new branch opened in Monmouth, Illinois in December 2021.
SENB Bank
Founded as South East National Bank in 1961 within the Iowa-Illinois Quad Cities area, SENB Bank expanded into the Stateline region covering Illinois-Wisconsin by 2019. By 2023, it managed roughly $370 million in assets across six locations serving Illinois, Iowa, and Wisconsin.
In May 2023, SENB’s parent company McLaughlin Holding Company agreed to be acquired by Central Bancshares, Inc., with the transaction completing in October 2023. Following this acquisition, SENB branches were incorporated into CBI Bank & Trust.
Joy, Illinois Branch Acquisition
In September 2023, Central Bancshares, Inc. reached an agreement to purchase the Joy, Illinois branch of Farmers-Merchants Bank of Illinois, previously known as Joy State Bank. This acquisition encompassed all deposit accounts totaling roughly $62 million, along with $27 million in outstanding loans. Following regulatory clearance, the deal was finalized on January 26, 2024.
Ownership Structure
CBI Bank & Trust operates as a fully owned subsidiary of Central Bancshares, Inc., headquartered in Muscatine. The company's shares are privately held, mainly by individuals with ties to the Muscatine, Iowa region.
Operational Footprint
Serving markets in East-Central Iowa and West-Central Illinois, CBI Bank & Trust’s reach includes Iowa counties such as Muscatine, Washington, Johnson, and Scott; Illinois counties including Rock Island, Knox, Mercer, Peoria, and Warren; as well as the area near the Illinois/Wisconsin border around Rockford and Beloit.
The bank maintains 24 full-service branches: three locations each in Muscatine and Davenport (Iowa), Galesburg and Moline (Illinois), and single branches in Buffalo, Coralville, Kalona, Walcott, Washington, Wilton (Iowa), Brimfield, Buffalo Prairie, Joy, Monmouth, Peoria, Roscoe (Illinois), and Beloit (Wisconsin). Branches in Galesburg, Brimfield, Monmouth, and Peoria operate under the F&M Bank brand as a division within CBI Bank & Trust.
Within Muscatine County, CBI Bank & Trust consistently ranks among the top financial institutions with local deposit market shares typically ranging from 28% to 32%.
Banking Products & Services
CBI Bank & Trust offers a wide array of financial products including checking accounts, savings accounts, money market accounts; certificates of deposit; individual retirement accounts; personal loans; auto financing; consumer loans; home equity lines; conventional mortgages and first-time homebuyer programs; business and agricultural lending; commercial deposit services and cash management solutions; remote deposit capture; merchant processing services; online banking with bill payment capabilities; mobile and telephone banking options; ATM/debit/credit/HSA/gift card products; drive-up windows and night deposit facilities; alongside investment advisory services provided through affiliates CBI Investment Services and F&M Investment Services. Trust services are also available.
To foster customer loyalty and engagement, the bank offers programs such as the Ambassador Club for customers aged 50 and older with qualifying accounts and the Mini-Millionaires Club aimed at encouraging savings habits among children aged 12 years or younger.
Community Engagement
The institution emphasizes strong corporate citizenship through active participation in community initiatives and philanthropic efforts. Senior bank officials serve on numerous boards and committees throughout its service areas while employees are motivated to contribute volunteer hours to local civic organizations and charitable projects.
Its charitable contributions are both consistent and meaningful, combining traditional funding with innovative programs. Notable efforts include support for local high school sports teams and the Hometown Hundreds initiative which donates $100 weekly to various community charities nominated by area residents.
Affiliations & Memberships
The bank maintains affiliations with prominent industry groups, including the American Bankers Association, the Iowa and Illinois Bankers Associations, the SHAZAM electronic funds transfer network, NACHA, the Federal Deposit Insurance Corporation, the Federal Reserve System, and the Federal Home Loan Bank System.