Two southwest Kansas banks merge
Scott City, KS–Security State Bank and Valley State Bank are pleased to announce the merger of their respective institutions. The merger agreement was put into effect on June 1, 2024. The combined entities will operate under the Security State Bank name.
Founded in 1961, Security State Bank currently has two branches in Scott City and Leoti. This will expand its reach by adding branches in Garden City, and Syracuse, with a loan production office in Dodge City.
“Both banks share a strong commitment to customer service and the belief that community banking plays a crucial role in our tight-knit communities,” said Josh Bailey, President and CEO of Security State Bank. “This merger will provide a more robust foundation for community banking in the region.”
Jim Randall, President and CEO of former Valley State Bank, expressed gratitude for the community’s support over the years. “It has been an honor to serve our customers’ financial needs, and we are pleased that they will continue to enjoy the benefits of community banking under the Security State Bank name.”
Security State Bank is a subsidiary of Security Bancshares Inc., while Valley State Bank is a subsidiary of Valley Bancorp Inc. Shareholders of Valley Bancorp will receive cash for their shares, though the financial terms were not disclosed.
Post-merger, Security State Bank will manage over $871 million in assets, over $635 million in deposits, and more than $642 million in loans. The bank has consistently maintained an A+ health rating and was recognized as one of the top 200 healthiest banks in 2021 by DepositAccounts.com.
Upon completion of the merger, Security State Bank will operate four branches: the current branches in Scott City and Leoti, along with the two former Valley State Bank branches in Garden City, and Syracuse, with the loan production office in Dodge City.
Security State Bank was represented with legal counsel from Stinson LLP. Valley Bancorp was represented with legal counsel from Spencer Fane.
