TIB Acquires Former Illinois Bankers' Bank
January 13, 2010
Dallas, TX…TIB announced today that, as the successful bidder, it has been awarded the purchase of Springfield, Illinois-based Independent Bankers’ Bank Bridge Bank, National Association (IBBBB), through a “Clean Purchase and Assumption”. This transaction to a strong and stable fellow bankers’ bank provides community banks that had formerly relied on IBBBB for correspondent services with the opportunity to proceed in a “business as usual” mode and to continue working with the same familiar correspondent bankers with whom they are accustomed.
Independent Bankers’ Bank Bridge Bank, N.A., was created by the FDIC to take over the operations of the recently closed Independent Bankers' Bank of Springfield, Illinois. The creation of the bridge bank allows its client banks to transition their correspondent banking needs to other providers with the least amount of disruptions. TIB purchased the bank under a “Clean Purchase and Assumption” agreement. Under the terms of the purchase, TIB assumed the bank’s deposit relationships and operational services. TIB did not acquire any of the bank’s loans, distressed assets or trust services.
“We are very pleased to be able to step into this role and provide a stabilizing influence for the community bankers of Illinois, Indiana, Michigan, Iowa and the rest of the region,” noted TIB President and CEO, Michael G. O’Rourke. “We already have over 100 customer banks in the region, so this part of the country is certainly not new for us. Further, we have significant experience in this type of situation, having assisted the FDIC in managing the operations of a large correspondent provider in the Southeast, following its closure, last year.”
As a strong and stable bankers’ bank that has more than enough capacity to comfortably serve IBBBB’s former customers, TIB was a logical choice as an acquirer. “We understand that it can be a real disruption for bankers to make fundamental changes in their correspondent providers,” explained O’Rourke.
“Bankers have enough to do on a daily basis without having to move their business from place to place. Our unique capabilities will enable these community bankers to stay right where they are and continue business as usual and being served by familiar faces. It should also be very comforting for bankers to know that TIB is financially strong with solid asset quality.
As an example of its commitment to the region, TIB has already been approved for the establishment of a branch in Illinois. This will take place right away, in order to ensure that the bankers receive familiar, consistent and uninterrupted service.
Further, with more than 1,500 customer banks throughout the nation, TIB offers bankers across the region an expanded product line that provides them with an enhanced opportunity to increase their bottom lines, while also retaining their valuable customers. Toward that end, TIB recently announced that it had shared approximately $24 million in revenue with customer banks in 2009, breaking the 2008 record by more than $1 million.
“We have already begun communicating directly with those banks impacted by this recent closure and the reception has been very positive – particularly as it relates to them being able to keep their business relationship in place. Of course, the prospects of having access to a wider range of services, not to mention our commitment to revenue sharing, are also very attractive,” added O’Rourke.
Customers are encouraged to utilize their normal routes of communication with their regular Springfield-based correspondent bankers. They can be reached by calling (800) 422-0734. The former IBBBB website also remains intact, in order to allow customers continued access to on-line services and systems.
Additionally, TIB has established a toll free line for customers to call for more information. That number is (888) 828-4842. Bankers can also visit TIB’s website at www.mybankersbank.com for more information on products or to view TIB’s financial highlights.
TIB provides correspondent banking products, services and partnership to more than 1,500 community banks across the country, including more than 100 across the Midwestern United States, prior to this acquisition. TIB is owned by more than 480 of the very banks it serves and has offices in Texas, Kansas, Tennessee, Oklahoma, Louisiana, Georgia, Florida, New Mexico, California, Oregon, Washington and now Illinois.
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