Washington Savings Bank to Acquire The First National Bank

For Immediate Release – February 18, 2021

Washington Savings Bank to Acquire The First National Bank

EFFINGHAM, IL – Washington Savings MHC (“Washington Savings”), Washington Savings Bank (“Washington Savings Bank”) and The First National Bank of Mattoon, Illinois (“First National Bank”) announced today the execution of a definitive agreement under which First National Bank will merge with and into Washington Savings Bank.  The terms of the deal were not disclosed.

First National Bank is a wholly-owned subsidiary of MGB Bancshares, Inc. and has two banking facilities in Mattoon, Illinois and one banking facility in Lerna, Illinois.  First National Bank had total assets of $105.2 million at December 31, 2020.  In addition to traditional banking services, First National Bank also provides trust and investment services and wealth management services.

“First National Bank has maintained an excellent reputation in the community under the leadership of Preston Smith.  We are excited at the opportunity to acquire First National Bank and to increase our community banking presence in the Mattoon area.  The transaction will significantly enhance our wealth management capabilities,” said David Doedtman, President of Washington Savings Bank.

Preston Smith, Chief Executive Officer of First National Bank, said, “We are excited to partner with a strong community bank like Washington Savings Bank.  We believe that this combination provides an opportunity for us to provide an expanded range of products and services to our customers while maintaining the high quality of customer service that our customers have come to expect.”

As of December 31, 2020, the combined banks would have had total assets of approximately $559.3 million and wealth management assets of nearly $100.0 million.

The transaction has been approved by each bank’s board of directors and is expected to close in the third quarter of 2021, subject to regulatory approvals, the approval of MGB Bancshares, Inc.’s stockholders, and the satisfaction of customary closing conditions.

Schiff Hardin LLP is serving as legal advisor to Washington Savings, and Barack Ferrazzano Kirschbaum & Nagelberg LLP is serving as legal advisor to First National Bank.