QCR in Illinois to buy Guaranty Federal in Missouri

QCR Holdings in Moline, Ill., has agreed to buy Guaranty Federal Bancshares in Springfield, Mo.

The $6 billion-asset QCR said in a press release Tuesday that it will pay $151.6 million in cash and stock for the $1.2 billion-asset Guaranty Federal. The deal is expected to close in the first or second quarter.

QCR plans to merge Guaranty Bank into its Springfield First Community Bank charter, though the combined bank will operate under the Guaranty brand in Springfield and southwest Missouri. 

“Springfield and neighboring southwest Missouri markets make up a vibrant region where strong relationships with our clients matter,” Larry Helling, QCR’s CEO, said in the release. 

Guaranty "strongly aligns with our culture and our dedication to client service,” Helling added. “Enhancing our market share in this region supports our strategic goals and enables us to extend our high-performing and profitable niche business lines benefiting clients and shareholders alike.” 

Guaranty has 16 branches and $1 billion of deposits. 

Monte McNew, Springfield First’s president and CEO, will remain the bank’s CEO. Shaun Burke, Guaranty Bank’s president and CEO, will become Springfield First’s president.

QCR said it expects the deal to be 13% accretive to its earnings per share in the first full year, excluding merger-related charges. It should take less than three years to earn back an estimated 5% dilution to QCR’s tangible book value.

Piper Sandler and Barack Ferrazzano Kirschbaum & Nagelberg advised QCR. Keefe, Bruyette & Woods and Sidley Austin advised Guaranty.