Heritage Bank and Fidelity State Bank announce merger to strengthen Topeka’s community banking sector

Heritage Bancshares, Inc., the parent company of Heritage Bank, and Fidelity Kansas Bankshares, Inc., the holding company of Fidelity State Bank and Trust Company, have announced a landmark merger designed to enhance the community banking sector in Topeka, Kansas. This strategic move will combine their resources, creating a $300 million financial institution poised to serve individuals and businesses across the Topeka banking landscape.

The transaction, which has been unanimously approved by the boards of both companies, is expected to close in the second quarter of 2025. Finalisation is contingent on shareholder and regulatory approvals, but both banks have expressed optimism about their shared vision for growth and customer-focused services.

What Does the Merger Mean for Topeka?

The merger marks a significant shift in the local banking scene, bringing together two established institutions with a shared commitment to local decision-making. Heritage Bank, established in 2003, has earned its reputation as a trusted community bank in Shawnee County, with $135 million in total assets and 16 employees. Fidelity State Bank, founded in 1922, has a legacy of delivering personalised banking services and currently holds $160 million in assets with a team of 29 employees.

The combined institution will operate under the Heritage Bank name, with plans to integrate Fidelity’s existing branches into its operations. This expansion will increase the bank’s presence in the greater Topeka area, offering customers access to three locations, enhanced resources, and a broader range of products.

Tony Konrade, President and CEO of Heritage Bank, remarked that the merger presents an opportunity to deepen the bank’s commitment to the Topeka region. He noted that Fidelity State Bank’s strong customer relationships and community focus align perfectly with Heritage’s mission to support local businesses and individuals.

Allan Towle, Chairman and CEO of Fidelity State Bank, highlighted the importance of retaining local decision-making within the new organisation. He stated that the partnership would ensure both customers and employees benefit from expanded opportunities without losing the personal touch that has defined both banks.

How Will the Merger Impact Customers?

Customers of both banks can expect a seamless transition, with a commitment from leadership to maintain the high level of service both institutions are known for. By leveraging their combined total assets, the merged entity aims to introduce new products while continuing to provide the community-centric approach that has been the foundation of their success.

For small business owners, the merger promises expanded access to resources, including loan programmes and financial advisory services. For individual customers, enhanced banking technologies and streamlined operations are expected to improve convenience and service delivery.

Why Is This Merger Significant for the Community Banking Sector?

This merger reflects broader trends in the community banking sector, where smaller banks are consolidating to remain competitive in the face of increased regulations and growing customer expectations. By pooling their resources, Heritage Bank and Fidelity State Bank will be better positioned to address the needs of a changing market while preserving their local identity.

Industry experts note that mergers like this often result in stronger financial institutions capable of driving regional growth. With $300 million in combined total assets, the new entity will serve as a cornerstone of the Topeka banking landscape, fostering economic development through investments in local businesses and infrastructure.

Who Advised on the Transaction?

Heritage Bancshares received financial advice from Olsen Palmer LLC and legal counsel from Armstrong Teasdale LLP. Fidelity Kansas Bankshares engaged CC Capital Advisors, operating as The Capital Corporation, as its financial advisor, with legal guidance from Stinson LLP.

Looking Ahead

The Heritage Bank and Fidelity State Bank merger represents a forward-looking approach to strengthening the Topeka banking landscape. By combining their expertise and shared values, the new organisation is set to provide superior customer-focused services while maintaining the principles of local decision-making that their customers value.

With this partnership, the banks aim to not only grow their operations but also deepen their impact on the local community. The unified institution will carry forward the legacy of both organisations, delivering on their promise to support Topeka’s businesses, residents, and future growth.