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Magnolia Bank acquires CUB branch

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Magnolia Bank recent acquisition of the Citizens Union Bank Hodgenville branch location means positive changes for the local community

The main motivation for buying the LaRue branch of CUB was to get the physical space for the Magnolia Bank operations center.

“We have non-contact employees in every branch that need to be consolidated together”, said President and CEO Ron Sanders. “The icing on the cake was that, we got four great employees in Teleana Davis, Dana Merritt, Raven Gribbins and Karen Dunn. We plan on keeping all four of them and we already have a place for all of them. We acquired 12 million dollars in deposits and a small loan portfolio. Our long term plans for that building are to consolidate that facility with the current Parkway Branch of Magnolia Bank”, added Sanders. He stated that the consolidation will occur within the next three months, as Teleana Davis and her staff will move to Parkway and the new South Lincoln facility will become home to the operation center.

The overall future of Magnolia Bank hinges on its current board of directors as they have been more motivated to buy than to sell, according to Sanders.

In business since 1919, Magnolia Bank continues to look for new opportunities. There have been little or no new bank charters in the United States since 2008 according to Sanders. Factors of the poor economic environment along with the almost negative interest margin environment, and the oppressive regulatory environment, consolidation continues to bring challenges and opportunities to the local banking industry. “We look at new opportunities every day”, said Sanders. With a lot of changes occurring in the Hardin county market, Sanders stated those occurrences create opportunities.

Consolidation of the banking industry, according to Sanders, is no different than local mom and pop grocery stores and gas stations. “Everyone has to get bigger because the margins are smaller”.

The acquisition of CUB will have no adverse effect on current customers of Magnolia Bank, according to Sanders. “Customers can expect a bigger branch at Parkway, a seasoned loan officer in Teleana Davis will be available there that we haven’t had before at that location, which then will offer a full service banking facility at Parkway”. In regard to the operation center, “We weren’t so concerned about how many deposits we were buying or how many loans we were buying, we were wanting to get that building. We wanted access to that building because it was either that or we were going to have to build.”

“Citizens Union Bank customers can expect they will have a hometown management team that will take care of them. I know all the executives with CUB and they are great people; they do a great job, but they are 80 miles away. Nobody likes the kind of change that they have to go through with their banking location...we all offer the same products but it’s the service and the level of service that is the difference”, added Sanders.

Magnolia Bank is currently undergoing a full bank conversion that positions the bank as they continue to adapt to the new technology curve.

‘We realize the millennial generation doesn’t bank the same way as the baby boomer generation and we are adapting to that”.

Sanders concluded “We have been here almost 100 years and we are continuing to upgrade and provide great banking service and we do that through our people, through our products, and we do that through our facilities and our locations. That is what our whole mission is and to be accessible to our customers 24 hours a day.”