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Illinois company to buy SFC Bank for $86.7M

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Moline, Illinois-based QCR Holdings Inc. (Nasdaq: QCRH) signed a definitive agreement to purchase Springfield Bancshares Inc., the holding company of Springfield First Community Bank.

The cash-and-stock deal is valued at $86.7 million. The transaction, approved by the boards of both companies, would give Springfield Bancshares’ stockholders 0.3 shares in QCR Holdings and $1.50 in cash for each share owned in Springfield Bancshares. The transaction, subject to regulatory and Springfield Bancshares stockholder approvals, is expected to close in the third quarter, according to a news release.

“Springfield Bancshares came about due to a need for a strong local community bank in Springfield. By partnering with QCR Holdings, SFC Bank will retain its name and brand, local decision-making and ties to the community,” SFC Bank Chairman and CEO Rob Fulp said in the release. “As importantly, SFC Bank will be able to expand its products and services to better serve clients’ current and future needs.”

SFC Bank had more than $560 million in assets and $445 million in deposits as of March 31. The company recorded 2017 net operating income of $7.6 million, an 11 percent increase from $6.9 million in 2016, according to the latest Federal Deposit Insurance Corp. data. SFC Bank operates its sole branch at 2006 S. Glenstone Ave.

Comparatively, QCR Holdings reported annual earnings of $35.7 million in 2017, a 29 percent increase over its $27.7 million in 2016 profits. As of March 31, the company’s assets were $4 billion and deposits were $3.3 billion. QCR Holdings operates in Illinois and Iowa via holdings that include Quad City Bank & Trust Co. and Rockford Bank & Trust Co., according to separate releases.

If its purchase of SFC Bank is successful, QCR Holdings would enter the Missouri market for the first time.

SFC Bank was founded in 2008 by Brian Straughan, Jan Baumgartner and Kirk Bossert. The company is the most recent locally owned bank chartered in Springfield, according to FDIC data.

“The Springfield acquisition will complement QCR Holdings’ other four bank charters as SFC Bank is a top-performing institution with one of the strongest community bank management teams in the area,” said Todd Gipple, chief operating officer and chief financial officer of QCR Holdings, in the release. “Partnering with SFC Bank will position us well to continue growing our franchise and create exceptional value for our shareholders.”

QCR’s shares were trading at $44.95 as of 8:50 a.m., compared with a 52-week range of $39.85 to $50.

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