OakStar finalizes purchase of 100-year-old bank

Three months after announcing its first planned acquisition, Springfield-based OakStar Bank completed the purchase of Bank of Urbana.

The deal for the bank chartered in 1903 closed Sept. 30 for undisclosed terms. OakStar Marketing Director Robin Rees said this morning Bank of Urbana’s four branches opened Saturday with temporary OakStar signage. She said system changes are planned for March.

“The makeover is done, and the technical stuff is all in the works,” Rees said.

With the buyout, OakStar gains Bank of Urbana’s $180 million in assets, 48 employees and branches in Urbana, Hermitage, Buffalo and Macks Creek. The combined company has $620 million in assets, 150 associates, six branches, a mortgage office in Kansas City and a loan production office in Florida. Bank of Urbana’s former website now redirects to OakStarBank.com, where a welcome message awaits transitioning customers.

“OakStar Bank clearly stood out as the best fit and best match for our customers and communities when we were reviewing offers from other interested banks,” Bank of Urbana President Bill Vaughan said in a news release. “Their commitment to our employees and our customers played a significant role.”

Vaughan, a fourth-generation owner of Bank of Urbana who’s nearing retirement, began seeking suitors since no immediate or extended family members were interested. His retirement date has not been set, and he plans to stay on in an advisory director role through the transition.