For Immediate Release

February 22, 2016

Sandhills State Bank and Bank of Keystone Unite

Bassett, Nebraska, February 22, 2016 – David Gale, Chief Executive Officer of Sandhills State Bank, and Randy Hendricks, Chief Executive Officer of the Bank of Keystone, jointly announce the purchase of the Bank of Keystone by Sandhills State Bank.

Hendricks stated, "The opportunity to combine two Western Nebraska legacy banking operations is a win-win for our customers and the communities we serve. Sandhills State Bank is committed to serving ranchers, farmers and the main streets of our communities. It just makes sense that we would join with them to ensure that local control and sound banking judgement remains in place for our families."

Gale added, "We see this as an exciting opportunity for Sandhills State Bank to ensure the continuance of economic independence with local financial decision making for the Sandhills region, just as the Bank of Keystone has done since 1909. The similarities between the two organizations are many, this union is a perfect cultural and geographic fit."

The purchase agreement between the two banks was completed on February 19, 2016. The next step towards completing the purchase is gaining regulatory approval. Upon approval, the Bank of Keystone customers will transition to Sandhills State Bank. Gale estimates the regulatory approval process will occur over the next 60 to 90 days. During this time, operations at both banks will continue as usual. "We expect to be ready to transition Bank of Keystone customers to Sandhills State Bank in late fall," Gale said.

The Bank of Keystone operates four branches in Keystone, Arthur, Hyannis and Elsie, Nebraska. All its branches will remain open and all employees will be retained, continuing to provide the same excellent service to the Bank of Keystone’s customers.

"The transition for customers will be simple and easy, they will continue to deal with their personal banker and have access to all their funds and branches during this time. In the future, they will also have access to all the products and services of Sandhills State Bank, such as mobile banking and online billpay," Gale explained.

The purchase elevates Sandhills State Bank’s total assets to over $230 million. Since 2010, Sandhills State Bank has grown nearly 600 percent, and it is now the largest bank headquartered and operating exclusively in the Nebraska Sandhills.

Sandhills State Bank is a locally owned and regionally focused financial institution committed to serving the Nebraska Sandhills’ ranching and farming community since 1902. It currently operates full-service branches in Bassett, Valentine, North Platte, Harrison, Alliance, and Hay Springs, Nebraska. The Bank’s local ownership supports the region’s economic independence and sustains the quality of life for the communities it serves.

For more information about Sandhills State Bank, please visit www.SandhillsState.com.