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Montrose State Bank (MSB) has merged into Community State Bank. The move will be invisible to most customers, says Robert M. Wolak, President & CEO of Community Bancorp, Inc., the parent company of Community State Bank.

"The only thing customers should notice," he says, "is a new name on the sign at a Montrose State Bank branch. We aren't closing any branches. Montrose State Bank customers will still see the same friendly faces they've always worked with."

Given regular mergers of growing banks, Wolak says keeping staff in place is important. "People don't like it when the lenders and tellers they've seen regularly for years get lost in the shuffle of mergers and acquisitions. And neither do we. This is very much a relationship business, and we want to make sure that our customers and Montrose customers maintain the relationships they've built over time.

"We're going to make sure Montrose customers continue to receive the kind of community-based service they have for almost 120 years. That's the kind of service Community State Bank has always provided, as well. Like Montrose, we've always been a small, community bank. We're a little closer to and more in tune with the people we serve."

Montrose State Bank has offices in Montrose, Flushing, Albee Township and New Lothrop. Community State Bank has offices in St. Charles, Thomas Township, Chesaning and Birch Run.

Wolak says the size and the location of the two organizations make them a good fit for each other.

"Both banks are small banks, with local ownership and local decision-making. We both primarily serve smaller towns and rural areas. And we've both become deeply integrated with our respective communities over long histories of service."

Community State Bank, which has assets of $137 million and deposits of $120 million, was founded in 1942. It has 75 employees. Montrose State Bank, founded in 1889, has 37 employees, $60.2 million in assets and $47.4 million in deposits.

While officials from both banks are referring to the change as a "merger," Community Bancorp is making an outright purchase of Montrose State Bank. Montrose shareholders will receive $54.67 per share of common stock in the transaction, as well as a special one-time dividend. That dividend could total as much as $7.3 million.

"Today's banking environment remains challenging to compete in," says John C. Wendling, Montrose State Bank's president and CEO. "Our board of directors started looking for a buyer about a year ago.

"Community presented the perfect opportunity. By matching up with a bank that shares our values and history, we can offer better products and services for our customers - and offer them from more locations. Together, it will make us a stronger bank."

CSB is the market-share leader in its primary service areas, with more than a third of banking deposits. MSB holds the number three spot in its service areas, with 13 percent of deposits.

Details of the merger and consolidation of operations are expected to be completed in March 2008, says Wolak.