Mount Ayr Record-News
Mount Ayr, Ringgold County, Iowa
February 24, 2010

Months of work by Diagonal citizens to ensure that the community would have a banking facility again culminated with the announcement this week that Iowa State Savings Bank of Creston has made an application to establish a new bank office in Diagonal.

Ever since U. S. Bank announced that it would be closing its office in Diagonal, Diagonal residents have been working to find a bank to replace U.S. Bank.

The bank has signed a purchase agreement of the bank building on main street subject to the bank receiving regulatory approval, which is expected in March.

"We'll open as soon as we can after regulatory approval and renovations," said Karl KNOCK, the bank's executive vice president and chairman of the bank's board of directors. "We're eager to get it open this spring."

In making the announcement, Dave DRISKELL, bank president, said, "We have had several good Diagonal and Ringgold and Taylor county customers for a long time. A Diagonal office will make banking with us easier for them and others who may enjoy using a local, community-minded bank."

DRISKELL said his bank believes that Diagonal has an unusually strong business core for a small town as well as a lot of good farming families and operations that the bank can serve.

"After the other bank decided to leave, Diagonal leaders said we were their choice to become Diagonal's local bank," said KNOCK. "That is both humbling and helps us realize the great partnership we have in Diagonal."

Kevin STEWART, senior vice president of ag and commercial lending and a director, knows the community well, having grown up in Ringgold county. "We're hoping existing and new customers will like the added convenience of a Diagonal office. It'll be great for people to drop off deposits, make payments or schedule to meet a loan officer,” he said.

The bank was seeking the approval of the Federal Deposit Insurance Corporation and state regulators for the new branch.

Following the closure of the U. S. Bank office [Friday] June [19] 2009, U. S. Bank transferred the ownership of the long-time bank building on Diagonal’s main street to the city of Diagonal with the provision that there be a three-year non-compete agreement. Diagonal leaders were able to get this reduced to a six month period.

The city then sold the building [for $1] to the Diagonal Community Development Corporation in December, which will in turn sell the building to Iowa State Savings Bank.

The Creston-based locally owned and managed bank also has branches in Lenox and Corning.

Transcription by Sharon R. Becker, February of 2010