Ohnward Bancshares to purchase Gateway State Bank in Clinton

Northwestern Financial Review, Jan 10, 1998

Ohnward Bancshares, Inc., is acquiring Gateway State Bank of Clinton from Thomson Investment Company. Pending regulatory approval, the acquisition is expected to be completed by early second quarter.

Ohnward Bancshares owns Maquoketa State Bank, the 1st Central State Bank in DeWitt with an office in Long Grove, and Tri-County Bank & Trust in Cascade with an office in Baldwin. Ohnward Bancshares' assets total approximately $300 million and the anticipated acquisition of Gateway State Bank will add another $20 million. Ownership of Ohnward Bancshares is controlled by the Tubbs and Fagerland families with the remainder of the stock owned by the employees through an employees stock ownership plan, and by 200 additional shareholders in Clinton and Jackson Counties.

Thomson Investment Company, the parent holding company of Gateway State Bank, is owned by Floyd England and operates other banks in Thomson and Savanna, Ill.

"It feels good to know that I am selling to a community-minded banking organization that will participate in the community," England said. "This also gives me an opportunity to continue to expand my banking operations in Illinois."

"We are excited about expanding into the Gateway community," said Alan R. Tubbs, president of Ohnward Bancshares. "John Fagerland, one of our principal owners, early in his banking career worked at City National right here in Clinton and I know he's excited to return. Others in our immediate families, including my wife and John's wife, grew up in Clinton and we are pleased to have the opportunity to be a part and contribute to the community. In addition, my family has farmed in Clinton County for nearly 150 years.

"We are also pleased to be a part of both Goose Lake and Charlotte where Gateway has offices," Tubbs added. "From our previous experience, we feel like we know small communities and agriculture."