Postville State Bank signs acquisition agreement with LeRoy C. Darby, Inc.

The Board of Directors of PSB Bancshares, Ltd. (PSB), the bank holding company of Postville State Bank (Bank), and LeRoy C. Darby, Inc., have announced their agreement for the acquisition of PSB and the Bank by LeRoy C. Darby, Inc.
LeRoy C. Darby, Inc. is an Iowa corporation and bank holding company that currently owns 100 percent of the stock of Union State Bank in Monona and 100 percent of the stock of Peoples State Bank in Elkader. LeRoy C. Darby, Inc. is owned by the LeRoy C. Darby, Inc. ESOP (a retirement plan for the employees of both Union State Bank and Peoples State Bank), LeRoy and Colleen Darby (Chairman and Vice Chairman, respectively, of LeRoy C. Darby, Inc.), Tricia Darby-Staff, James Burger (President of Union State Bank), and Keith Garms (President of Peoples State Bank).
The Board of Directors of both PSB and the Bank have recommended to their respective stockholders that they agree to sell 100 percent of the stock of each entity to LeRoy C. Darby, Inc.
LeRoy C. Darby, Inc. has indicated its intention to maintain the Bank as a locally managed community bank in Postville, and plans to retain the current staff of officers and employees.
The proposal is subject to the execution of a definitive purchase agreement and regulatory approval. It is anticipated that the transaction will be completed during the fist quarter of 2005.