Washington Savings Bank, First Federal Savings and Loan of Mattoon to Merge

Washington Savings Bank of Effingham and First Federal Savings and Loan Association of Mattoon plan to merge.

Washington Savings Bank President and CEO David Doedtman said the consolidation agreement was signed on Thursday. The consolidation is subject to the receipt of all required regulatory and member approvals.

Once the merger is finalized and approved, First Federal Savings and Loan of Mattoon will become Washington Savings Bank. Doedtman will serve as President and CEO of the combined organization, while First Federal President John Spitz will be Senior Vice-President and Mattoon Market President. The bank will be headquartered at Washington's downtown Effingham location and will maintain locations on Keller Drive in Effingham and at 1111 Charleston Avenue in Mattoon.

Doedtman said, "We are excited by the opportunity to expand our services in Central Illinois. Many of our customers travel to and from Coles County for work, shopping and recreation. In addition, we are excited about the opportunity to provide trust and investment services to our customers. By combining with First Federal, we will become stronger and better able to serve our customers in both markets."

Spitz said, "Combining with Washington Savings Bank will allow us to offer a more complex suite of deposit, loan and electronic banking services to our customers while maintaining our legacy as a customer-owned financial institution. While the name on the bank may be changing, our employees will remain the same, and continue to serve our customers and the Mattoon community with their remarkably high level of customer service."

Doedtman said Washington Savings Bank has about three times the resources of First Federal ($265 million as opposed to $89 million) but said the addition of trust and investment services is a key.

As member-owned institutions, those who have accounts at the institutions are owners and will receive information allowing them to vote on the merger.

Both institutions carry a five-star rating from Bauer Financial, an independent company that rates the financial strength of all banks.

The merger is expected to close no later than June 30. If approved by the regulators, the resulting bank will have assets of approximately $350 million, equity capital of approximately $55 million, and will employ nearly 60 people.