Plans to sell the Home Federal Savings Bank in Toledo to Pinnacle Bank of Marshalltown were confirmed by Bradley Krehbiel, president of Home Federal on Tuesday.
Krehbiel told The News-Herald he had been at the Toledo bank on Monday meeting with employees. The bank building is located at 1301 South County Road. (U.S. Highway 63 south).
Pinnacle Bank is owned by Iowa River Bancorp of Iowa which is a wholly-owned subsidiary of the Sac and Fox Tribe of the Mississippi in Iowa.
LEFT- New ownership is anticipated for the Home Federal Savings Bank on U.S. Highway 63 south in Toledo by early next year.
The deal is subject to regulatory approval and is expected to close in the first quarter of 2012 according to a Home Federal news release.
"We are pleased to announce the sale of our Toledo branch to a local bank," Krehbiel said in as news release. "The sale and the related gain will improve the bank's core capital position and allow us to focus our efforts in the other market areas we serve."
Pinnacle Bank of Marshalltown was purchased by the Tribe in the summer of 2009 from former Tama bankers Bill and Marilyn Boehm.
The Boehms had bought Tama State Bank in 1970 and shifted operations to Marshalltown in 1996.
The Tama State Bank location was sold to Lincoln Savings Bank in 2004.
Home Federal Savings Bank first entered the Toledo area business scene in the early 1970s when Home Federal Savings and loan opened an office in the 200 block of West High Street.
The present bank building opened in 2001.