Two of Springfield’s well-known banking institutions announced a planned tie-up in a deal valued at roughly $151.6 million.
Moline, Illinois-based QCR Holdings Inc. (Nasdaq: QCRH), the parent company of Springfield First Community Bank, made public in November plans to buy Guaranty Federal Bancshares Inc. (Nasdaq: GFED), the operator of Guaranty Bank.
Upon completion of the deal, the combined entity would operate under the Guaranty Bank name in Springfield and southwest Missouri. SFC Bank President and CEO Monte McNew will serve as CEO of the combined bank, with Guaranty President and CEO Shaun Burke working as its president.
“Guaranty Bank has been proud to serve our communities for more than a century,” Burke said in a news release. “Joining the QCR Holdings family and the team at SFC Bank is an exciting opportunity for us to expand our product and service offerings while continuing our track record of delivering exceptional client service.”
The deal expected to close in the first or second quarter of 2022 would create a combined banking entity with $2 billion in assets, $1.6 billion in deposits and $1.5 billion in loans, the bulk of which comes from Guaranty.
The merger means movement will be registered in deposit market share, a benchmark the Federal Deposit Insurance Corp. releases annually. In the Springfield metropolitan statistical area, Guaranty Bank ranked No. 5 with $793.1 million, or 5.4% of the market share, while SFC Bank was No. 7 with $608.7 million, or 4.2% of the market share. Combined, they would have roughly $1.4 billion in deposits as of June 30, 2021, enough to rank the combined company No. 4 by the most recent data available
During the third quarter, Guaranty Bank’s profits rose 79% to $3.4 million. QCR reported net income of $31.6 million, an 83% increase from $17.3 million a year earlier. According to Federal Deposit Insurance Corp. data, SFC Bank’s net income for the first half of 2021 was roughly $6 million, a 45% increase from $4.1 million for the first six months of 2020.
Guaranty is slated to join QCR around four years after that company purchased SFC Bank in a deal valued at $90.7 million.
“Our M&A strategy has always been about finding the right partners in the right markets that share our core values and business strategy,” said Todd Gipple, president, chief operating officer and chief financial officer of QCR Holdings, in the release.
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