Last edited 2:53 p.m., March 27, 2014
Springfield-based Old Missouri Bank has entered into an agreement to purchase the Bank of Ash Grove.
The cash deal for undisclosed terms is expected to close around June 30, pending regulatory approval, and would double Old Missouri's branch count to four, said Mark Harrington, president and CEO of the Springfield company.
Harrington said Old Missouri sought out the Bank of Ash Grove for the deal, and both companies' boards approved the deal in late February.
The Bank of Ash Grove operates a branch in the Greene County city roughly 22 miles northwest of Springfield, as well as a location in nearby Walnut Grove.
"We do a fair amount of business out there," Harrington said, pointing to agriculture loans in particular. "It seemed natural. We felt like we had the infrastructure to take on some more size."
Old Missouri, which operates two branches in Springfield, would take on some $65 million in assets from the Bank of Ash Grove and roughly $60 million in deposits. Upon completion of the purchase, Old Missouri would operate with $235 million in assets and roughly $205 million in deposits, Harrington said.
Harrington said any branding changes wouldn't occur until at least year's end.
"We'll do what we can to keep their identity out there," he said of the Bank of Ash Grove. The company last year celebrated its 130th anniversary, according to The Vedette
Harrington said officials have yet to determine whether Bank of Ash Grove President and CEO John Hulston - whose family currently owns the company - will take a position in the combined company.
Old Missouri Bank would take on 15 employees through the acquisition, bringing its total count to around 50, Harrington said.[[In-content Ad]]