OakStar pens merger with Bank of Urbana

Last edited 9:45 a.m., July 14, 2016

OakStar Bank this morning announced a merger agreement with Bank of Urbana.

The transaction would add Bank of Urbana’s $180 million in assets, 48 employees and four branches. Combined, the company would have $620 million in assets, 150 associates, six branches, a mortgage office in Kansas City and a loan production office in Florida.

Terms of the deal, expected to close in first-quarter 2017, were not disclosed. Both companies boards’ approved the deal, which is subject to regulatory approvals, according to a news release. OakStar Chief Operations Officer Rob Buchanan said via email Bank of Urbana would take on the OakStar name.

“Joining forces positions OakStar Bank as one of the strongest community banks in Missouri and increases our commitment to our local community in the coming years,” OakStar President and CEO Randy Johnson said in the release.

OakStar, which last year posted annual revenue of $21.85 million for 2013-15 growth of 42 percent, currently operates a branch each in Springfield and Bolivar, as well as the offices in Kansas City and Florida.

“OakStar Bank clearly stood out as the best fit and best match for our customers and communities when we were reviewing opportunities for today and in the future,” Bank of Urbana President Bill Vaughan said in the release. “Their commitment to our associates and our customers played a significant role in the selection process.”

Based in Urbana, the company also has branches in Hermitage, Buffalo and Macks Creek.