CBI Bank & Trust, formerly known as Central State Bank, is a community banking organization based in Muscatine, Iowa. It is a subsidiary of Central Bancshares, Inc., a bank holding company that is also based in Muscatine. Total assets are over $1.1 billion and it employs approximately 230 individuals. The bank traces its origins to 1865 and serves over 43,000 households and businesses with a full range of banking and financial services delivered through 17 banking centers in Coralville, Davenport, Kalona, Muscatine, Walcott, Washington and Wilton, Iowa and Brimfield, Buffalo Prairie, Galesburg, Monmouth and Peoria, Illinois, as well as through a variety of electronic banking channels.
History
The story of CBI Bank & Trust actually encompasses the history of over a half dozen banks that came together over the years to form today's organization.
CBI Bank & Trust (formerly Central State Bank)
Central State Bank's history can be traced to the mid-nineteenth century, a time when "private banks" — those not open to the general public — were the norm. The private banking house of Isett and Brewster of Muscatine was one of the earliest of this type in Iowa and operated successfully for a number of years. On May 1, 1865, it was converted to a state-chartered institution, Merchants Exchange Bank, which was opened to the general public. Later that year, conversion to a national charter brought a change in name to Merchants National Exchange Bank.
In the early years, it was not unusual for banks to operate under two charters, one national and one state, with both institutions located in the same building and owned by the same stockholders. Nationally chartered banks traditionally catered to the needs of businesses and they could issue their own bank notes, which served as currency in the absence of today's Federal Reserve Notes. By contrast, state-chartered institutions emphasized serving individuals and families by accepting savings deposits and making loans for personal and home financing. In 1880, state-chartered Muscatine Savings Bank was organized for the purpose of serving the community in tandem with Merchants Exchange National Bank.
During the intervening years, this dual-bank organization continued to grow. There were a couple of name changes along the way: in 1886, Merchants National became the First National Bank of Muscatine (no relationship to the present-day entity of the same name), and in 1907, Muscatine Savings Bank changed its name to the First Trust and Savings Bank of Muscatine. The year 1933 brought a combining of banking interests into a single operating unit, a new state charter, and a change in name to Central State Bank.
From the 1930s through the 1990s the bank operated primarily in the Muscatine trade area and developed a reputation for leadership. It was among the first banks in Iowa to offer a sidewalk/walkup teller with extended hours for customer convenience (1957); the first bank in Muscatine to offer drive-up banking; the first to open an office on the community's north side (Park Avenue Banking Center, 1971) and the first to branch into the south side (Grandview Avenue Banking Center, 1977). It launched the area's first banking affinity group, the Ambassador Club (1988), and it was the first to offer in-store banking (Econofoods, 1990). It was also among the first in the area to offer ATM services, debit cards, online and mobile banking.
In 2005, the bank branched beyond Muscatine for the first time, opening an office in Wilton, Iowa. In July, 2013, two affiliate banks, Freedom Security Bank (with locations in Coralville, Iowa and Kalona, Iowa) and West Chester Saving Bank (located in Washington, Iowa) were merged into the organization, but continued to operate under their existing names as offices of Central State Bank. On April 1, 2015, the bank's parent company, Muscatine-based Central Bancshares, Inc., acquired Buffalo Prairie State Bank, Buffalo Prairie, Illinois and began operating it under its existing name as an office of Central State Bank.
On September 1, 2015, Central State Bank changed its name to CBI Bank & Trust and concurrently brought the Freedom Security Bank, West Chester Savings Bank and Buffalo Prairie State Bank offices together under the new name, logo and brand.
In August, 2016, the downtown Davenport, Iowa branch office of MidwestOne Bank was acquired and merged into the bank.
In June, 2020, Walcott Trust and Savings Bank, based in Walcott, Iowa, was merged into CBI Bank & Trust. It had been acquired by Central Bancshares, Inc. the previous December.