The $2.7 billion-asset
Southern Missouri said in a press release Tuesday that it will pay $29.9
million for the $254 million-asset parent of FortuneBank. Southern Missouri
will also assume about $7.5 million of subordinated debt.
The deal is expected to close
late in the first quarter.
FortuneBank has $209 milion of
loans and $215 million of deposits.
The acquisition is "an
important step in our long-term growth," Greg Steffens, Southern Missouri’s
president and CEO, said in the release. "Fortune has developed a number of
business lines that complement our organization well, and [it] provides a point
of entry to a large and growing banking market where we believe our community
banking model will perform well.”
Daniel Jones, Fortune’s chairman
and CEO, is expected to join Southern Missouri’s board.
Southern Missouri said it
plans to cut about 30% of Fortune’s annual noninterest expenses.
Excluding merger charges, the
transaction is expected to be 8.8% accretive to Southern Missouri’s earnings
per share in the fiscal year that will end on June 30. It should take less than
three years for Southern Missouri to earn back an estimated 3.8% dilution to
its tangible book value.
Piper Sandler and Armstrong
Teasdale advised Fortune. Silver, Freedman, Taff & Tiernan advised Southern
Missouri.
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