Bank of Missouri, Countryside Bank enter merger

It was the start of an acquisition.

Nitsch, Springfield community bank president for The Bank of Missouri, proposed a merger to Muench, president and CEO of Countryside Bank, and now the two are joining forces.

The Bank of Missouri, based in Perryville, has started the process to acquire Republic-based Countryside Bank. The deal is expected to close by the end of April, pending regulatory and shareholder approvals, Nitsch said.

The Bank of Missouri has about $540 million in assets, but only $48 million is in the Springfield market, said Nitsch, who left Regions Bank to open Bank of Missouri’s limited-service branch here in September 2006.

With $97 million in assets, Countryside Bank is the 19th-largest bank in the Springfield metropolitan area, according to the Federal Deposit Insurance Corp.’s June 30 market share report. The Bank of Missouri is not listed in the FDIC report because it does not have a full-service branch in the market. The merged bank would move up four to five spots on the list.

When informed of the merger plans, Citizens National Bank chairman and CEO Frank Hilton said it makes sense in Springfield’s competitive banking market.

“The best way to acquire market share in Springfield is to merge into it,” said Hilton, whose bank has more than $270 million in assets. “It’s difficult to come into this market brand new and just build market share day-to-day without acquiring it. We’re likely to see more of this kind of thing.”

Countryside Bank has two full-service branches, one each in Republic and Springfield. The Bank of Missouri has filed for FDIC approval to convert its 1602 E. Republic Road location into a full-service facility; that change should happen Feb. 1, Nitsch said.

Muench said the merger gives Countryside Bank the chance to immediately offer new services and higher loan limits to customers.

“It’s going to provide us the opportunity to offer significantly more products to our customers, as well as allow our employees to have additional benefits,” Muench said, noting that all 36 of Countryside’s part-time and full-time employees will stay on once the acquisition is complete and that both he and Nitsch will keep their current positions.

“In the long run, it will also provide an even better return for our shareholders.”

Nitsch added that a long-standing friendship between The Bank of Missouri CEO David Crader and Countryside Bank chairman Charles Spangler “was instrumental in making this whole transaction come together.”