Commerce Bancshares acquiring Oklahoma bank

Kansas City-based Commerce Bancshares Inc. (Nasdaq: CBSH) has reached an agreement to acquire Summit Bancshares Inc. of Tulsa, Okla. CBSH stock hit a 52-week high of $41.86 this morning after yesterday's deal announcement.

Expected to close in the third quarter, the agreement would merge Summit into a wholly owned subsidiary of Commerce. The transaction is valued at roughly $40.6 million, made up entirely of Commerce stock, according to a news release.

"As part of our long term commercial expansion strategy, we are pleased to partner with Summit Bank and its leadership to expand our presence in the Tulsa market and to enter the Oklahoma City market," Commerce President and Chief Operating Officer John Kemper said in the release.

Commerce Bancshares - the $22.2 billion bank holding company of roughly 360 Commerce Bank branches in five states, including seven in Springfield - would gain approximately $261 million in assets, $213 million in loans and $231 million in deposits through the deal. After completion of the acquisition, Commerce would manage about $600 million in loans in Oklahoma.

"Teaming up with an organization like Commerce that understands the importance of community and relationships, and a bank that has some of the best products and services in the industry, represents a good opportunity for us to offer even more to our customers," said Summit CEO Wade Edmundson, who upon completion of the merger would become CEO of Commerce's Oklahoma market.

Commerce Bancshares recorded first-quarter profits of $61 million, a 7.3 percent decrease compared to $65.8 million in earnings during the same quarter of 2012.[[In-content Ad]]