First Iowa State Bank stands as a testament to community banking, born from the merger of two established institutions, First Iowa State Bank of Albia and First Iowa State Bank of Keosauqua, on January 1, 2023. Both banks, originally chartered in the 1930s, brought together decades of dedicated service and a shared commitment to their local areas. This union created a stronger, single entity, unified in its mission to uphold a legacy of community support and employee empowerment. For generations, these banks thrived under family ownership, evolving over the last decade into 100% employee-owned institutions, a unique model that underscores their dedication to both their staff and the communities they serve.
The Albia & Eddyville Chapter of First Iowa State Bank
The roots of First Iowa State Bank in Albia and Eddyville trace back to 1930, a period of economic consolidation. In Albia, three banks – First National Bank, Iowa Trust and Savings Bank, and Albia State Bank – joined forces to form a stronger financial foundation during challenging times. The name itself, First Iowa State Bank, reflects this merger, drawing from the names of its founding institutions. In its inaugural year, the newly formed bank demonstrated immediate strength, amassing over $1 million in assets and $655,339 in loans, signaling its vital role in the local economy.
The Bates family became deeply interwoven with the bank’s history from the 1930s through the 1950s. David A. Bates, a prominent figure, served as Iowa’s Superintendent of Banking during the 1930s and played a key role in the establishment of the Federal Deposit Insurance Corporation (FDIC), a cornerstone of modern banking stability. His son, Robert T. Bates, initially pursued a creative path as an interior designer in Hollywood after serving in the Navy. However, he returned to Albia in 1953 and dedicated himself to the bank, starting as a teller and ascending to Chairman of the Board from 1957 to 1995. Robert T. Bates left an indelible mark, transforming the Albia bank location into a Victorian-era showcase, filled with artwork from local and recognized artists, drawing visitors to Albia and enhancing community pride. His influence extended beyond the bank, as he also contributed to the remodeling commission for Terrace Hill, the Iowa Governor’s residence.
As decades passed, the Bates family expanded their ownership in First Iowa State Bank. Robert L. Kaldenberg and Raymond H. Davis also became significant shareholders, creating a strong partnership that reinforced the bank’s commitment to community banking values. Their combined leadership ensured the bank remained a pillar of strength for local communities.
Expanding its services, First Iowa State Bank opened a motor bank office in Albia in 1973 on Benton Ave East, which underwent a Victorian-themed remodel in 2003, mirroring the aesthetic of the historic Albia city square.
In 1987, First Iowa State Bank further extended its reach by opening an office in Eddyville. This branch was strategically located in a restored historic building on Main Street, a building with its own banking history, having previously housed the Manning & Epperson State Bank, established in 1902. This connection to the Manning family lineage further ties into the broader story of Iowa banking families.
By 2013, under the stewardship of the Davis and Kaldenberg families, First Iowa State Bank (Albia & Eddyville) had grown significantly, with assets exceeding $148 million and loans over $77 million. Looking towards the future and desiring to maintain local ownership, they chose to align with Van Buren Bancorporation, recognizing the Manning family’s legacy and stability as a perfect fit to ensure First Iowa State Bank’s continued leadership in its communities.
The Keosauqua, Cantril & Bloomfield Chapter of First Iowa State Bank
The story of First Iowa State Bank in Keosauqua, Cantril, and Bloomfield began in March 1931 with the organization of Farmers State Bank of Keosauqua and Birmingham. Initially, it was a community endeavor with 70 shareholders, many local residents investing modest sums in the new venture. Local family names like DeHart, Hodges, Mechem, Rinaberger, Secor, and Syfert were among the early investors. The bank opened in what is now the Van Buren Telephone Company office, filling a crucial gap as Keosauqua had been without a bank following the closures of Manning Bank and Keosauqua State Bank. Dr. F.M. McClurg provided space for the bank at a rental rate of $30 per month for 30 years. By June 1931, Farmers State Bank quickly established itself, with deposits reaching over $151,000 and loans exceeding $25,000.
A pivotal moment arrived in 1936 when Fred E. Ovrom acquired controlling interest from B.J. Howland. Fred Ovrom’s leadership, which lasted until his death in 1979, transformed Farmers State Bank. Serving as president from 1936 to 1973, he shifted the bank’s philosophy to prioritize loans for local farmers and businesses, becoming a driving force in the community. During his 45-year tenure, bank assets grew dramatically from $275,000 to $22 million. Beyond banking, Fred Ovrom was deeply involved in Keosauqua’s civic life, serving as a city councilman and playing a key role in establishing the local sale barn, the Keosauqua Light Plant, the Keosauqua Rotary Club, and the Keosauqua Business Club.
Under Fred Ovrom’s guidance, Farmers State Bank constructed a new, larger building in Keosauqua between 1957 and 1958, which, with expansions, remains the main Keosauqua location for First Iowa State Bank today. The Birmingham office also underwent a significant renovation in 1971, becoming a prominent feature of downtown Birmingham. However, after many years of service, the Birmingham branch closed in May 2019, as banking needs evolved.
Family leadership continued with Fred Ovrom’s successors: his son, Arthur P. Ovrom, and son-in-law, John A. Manning, who took over in 1973. Further Manning family involvement followed with the hiring of John O. Manning in 1973 and George E. Manning in 1979, ensuring continuity and deep local ties.
The formation of Van Buren Bancorporation in 1980 marked another strategic step, creating a one-bank holding company. This expanded in 1983 with the acquisition of State Savings Bank of Cantril. A new branch of State Savings Bank opened in Bloomfield in 1994, further extending the bank’s regional presence. In 1996, Farmers State Bank and State Savings Bank merged to become Community First Bank, streamlining operations and branding.
In 2013, Community First Bank initiated the acquisition of First Iowa State Bank (Albia and Eddyville), a move to further growth and market presence. Two years later, in January 2015, Community First Bank adopted the name First Iowa State Bank, creating a unified brand identity in anticipation of a full merger, which would eventually occur in 2023.
A forward-thinking step towards employee empowerment was taken in October 1993 with the establishment of an Employee Stock Ownership Plan (ESOP) by Van Buren Bancorporation. Initially, employees purchased 30% of the holding company. This commitment to employee ownership culminated in August 2017 when the remaining family-owned shares were sold to the ESOP. This transition made First Iowa State Bank one of the select few 100% employee-owned community banks in the nation, solidifying its unique position and dedication to its employees and the Iowa communities it proudly serves.
