Mercantile Bank’s name will live on in Quincy and Palmyra, Mo., according to officials from United Community Bancorp Inc. of Chatham, who finalized their bankruptcy purchase of the local bank on Friday.
“Our plan will be to roll our current UCB branches (in Quincy and Palmyra) into Mercantile in 2014,” said Todd Wise, president and CEO of United Community Bank.
Mercantile has operated in Quincy since 1906 and the name is well known and trusted in the community, Wise said.
Mark Tyrpin, 48, of Quincy, was named the new Mercantile Bank president today. He replaces H. Blaine Strock, who is retiring.
“Mercantile Bank has been the premiere bank in town and my staff at the local UCB locations is looking forward to working with the other Mercantile locations and exceeding the customers’ expectations,” Tyrpin said.
Wise, Tyrpin and other bank officials met with employees at the four Mercantile locations and two UCB-owned properties in Quincy on Monday. UCB completed the purchase of two Heartland Bank locations in Quincy and one Palmyra in October and those will operate under the Mercantile name once regulatory hurdles and systems are fully meshed.
United Community Bank now owns 33 branches in 23 communities throughout Central Illinois and Northeast Missouri. The company has about $1.8 billion in assets. It operates Mercantile Bank in Quincy, Brown County State Bank in Mount Sterling and Golden, Marine State Bank in Carthage, Hamilton and Augusta, and United Community Bank locations throughout Central Illinois.
Mercantile Bancorp Inc. once owned six banks. The holding company was profitable until it bought banks in Florida and Kansas that held a large number of mortgage loans that went into default when the housing bubble burst in 2008.
MBI tried to keep its Royal Palm Bank of Naples, Fla., and the Heartland Bank of Leawood, Kan., solvent by selling three smaller, but profitable banks. Hannibal National Bank was sold to R. Dean Phillips of Quincy for $28 million in February 2007, and Brown County State Bank and Marine Bank & Trust of Carthage were sold to UCB for $25.8 million in early 2010.
The FDIC closed the Royal Palm and Heartland banks last year.
MBI filed for bankruptcy after UCB made its purchase offer in June. U.S. Bankruptcy Judge Kevin J. Carey of the Delaware District ruled in late September that UCB’s plan to buy Mercantile Bank for $23 million could proceed.
“We are pleased the sale is final,” said Lee Keith, chairman of Mercantile Bank, in a release. “Our customers will see the same faces and they can look forward to enhanced services and conveniences as a result.”
Keith will remain chairman of Mercantile Bancorp Inc. which will remain an entity for a short time, after ending his association with Mercantile Bank.
Mercantile Bank and United Community Bank facilities in Quincy and Palmyra have about 150 employees. Wise said that work force will be needed to meet the needs of the expanding UCB network.
Wise cited the community’s manufacturing, retail, medical and educational strengths as reasons that UCB wants to be in the Quincy area.
“Quincy is a great Midwestern town and a population of 40,000, with the diversity that you have within the local economy. All of that makes for a great community,” Wise said.
Philip Krupps, president and COO of Brown County State Bank and a new member of the Mercantile Bank Board of Directors, said the Quincy area also means consistency.
“Even through the economic turmoil Quincy was consistent and this bank was consistent and that’s attractive to a potential owner,” Krupps said.
AT A GLANCE
• Mark Tyrpin has been named president of Mercantile Bank, which will have six locations in Quincy and one in Palmyra, Mo., after regulatory approval of the unified name next year. Tyrpin has worked with Quincy banks for more than 25 years, most recently with United Community Bank as senior vice president and market manager. Tyrpin teaches classes in money and banking and personal finance at Quincy University, where he received his master’s degree in business administration. He also had an undergraduate degree from the University of Illinois in Chicago in economics. He is an instructor for the Illinois Bankers Association.
• Current directors of Mercantile Bank’s board of directors will continue in an advisory capacity, along with five new members: Robert Narmont, chairman and CEO of United Community Bancorp; Todd Wise, president and CEO of United Community Bank; Mark Tyrpin, president of Mercantile Bank; Philip Krupps, president and COO of Brown County State Bank; and Randy McFarland, the senior vice president and trust officer for Mercantile Trust Services.
• Dan Cook, the senior trust officer at Mercantile Bank, will assume responsibility for managing the investment portfolios for all UCB properties. Cook joined Mercantile Bank in 1994.