Great Southern Bancorp Inc. (Nasdaq: GSBC) agreed to purchase Cincinnati-based Fifth Third Bank’s St. Louis branches, deposits and loans.
The acquisition would more than double the Springfield-based banking company’s presence in its second-largest market, according to a news release.
Great Southern agreed to buy 12 branches and assume roughly $261 million in deposits and $155 million in loans. Currently, the company operates eight branches in St. Louis, and the acquisition would double its deposits held in the city. Great Southern spokeswoman Kelly Polonus said via email the company would buy buildings, furniture and equipment in the deal for roughly $18 million, pay a small premium on the deposits and purchase the loans at face value.
"Great Southern has served the St. Louis-area market with a physical presence since 2005. This transaction will significantly strengthen our presence in this vibrant region," Great Southern President and CEO Joe Turner said in the release. "We warmly welcome Fifth Third's retail and small business customers and its strong team of associates to Great Southern and look forward to working with them to build even stronger relationships with area customers."
Subject to regulatory approval, the deal is expected to close in the first quarter next year. Great Southern officials predict the transaction would result in additional annual earnings of 7 to 9 cents per common share.
Earlier this month, Fifth Third Bank penned a deal to sell 17 branches, as well as their deposits and loans, in the Pittsburgh metropolitan statistical area to First National Bank of Pennsylvania. That followed a June announcement the company (Nasdaq: FITB) would consolidate or sell roughly 100 branches to slim up its offerings in response to customer demographics, according to news releases on the company’s
website.
In the Great Southern deal, New York-based Sandler O’Neill & Partners LP served as financial adviser and Washington, D.C.-based Silver, Freedman, Taff and Tiernan LLP worked as legal counsel for the Springfield bank. Fifth Third Bank was represented by financial adviser Deutsche Bank Securities Inc. and legal counsel Debevoise & Plimpton LLP, according to the release.
