Last edited 11:36 a.m., Feb. 26, 2014Poplar Bluff-based Southern Missouri Bancorp (Nasdaq: SMBC) yesterday signed a definitive agreement to purchase Peoples Bank of the Ozarks in a deal valued at roughly $22.9 million.
The Southern Bank holding company, which operates a branch at 4650 S. National Ave., agreed to acquire Peoples Bank in a stock and cash transaction. Under the terms of the agreement unanimously approved by both companies' boards, Peoples Bank shareholders would receive nearly one third of one share of Southern Missouri stock and $10.90 in cash for each share of Peoples common stock. Peoples Bank of the Ozarks is 100 percent owned by Peoples Banking Co., which itself is 80 percent owned by Peoples Service Co., according to a news release.
Southern Bank will assume roughly $6.5 million in subordinated debt and retire $2.9 million in other debt through the deal. The company gains Peoples Bank's 10 branches in Greene, Christian, Stone, Taney and Webster counties, and assumes its assets of $272 million, loans of $191 million and deposits of $230 million. The deal is expected to close in the third quarter of the calendar year.
“We have been interested for some time in expanding our presence in and around Springfield, and we first began working towards that in mid-2010, with the opening of a loan production office in that market," Southern Missouri President and CEO Greg Steffens said in the release. "We have experienced strong loan growth in what is now a full-service facility in Springfield, but this partnership provides a great opportunity to build on that with Peoples’ substantial retail presence in the market.”
Justin Cox, community president for Southern Bank in Springfield, said the Peoples Bank branches will transition to the Southern Bank brand after the completion of the acquisition, but no timeline has been set.
Peoples Bank Chairman and CEO Todd Hensley is expected to join the board of directors of Southern Missouri.
"Peoples Service Co. is the culmination of approximately 40 years of my family’s involvement in the community banking industry,” Hensley said in the release. “Southern Missouri Bancorp is a community-focused partner that can help us both leverage the strength of our franchise and continue to thrive in the ever-changing banking environment."
On Feb. 21, Southern Missouri completed its acquisition of Citizens State Bankshares of Bald Knob Inc. For its second quarter ended Dec. 31, Southern Missouri posted net income of $2.5 million, a 1.6 percent increase compared to the same quarter of 2012, according to separate news release.
Southern Bank is slated to relocate to the first floor of the Gardner Capital Inc. building at 4803 S. National Ave. when it is completed in late 2014, according to
Springfield Business Journal archives.
SMBC shares were trading at $34.22 as of 10:47 a.m., compared to a 52-week range of $23.64 to $37.[[In-content Ad]]
