Southern Missouri Bancorp, the parent organisation of Southern Bank, has signed an agreement to acquire Central Federal Bancshares for $24m in an all-cash transaction.
Under the terms of the transaction agreement, Central Federal will be merged into Southern Bank, where Central shareholders will receive a price of $15.90 for each share of Central common stock in cash.
Central Federal Bancshares is the parent organisation of Central Federal Savings and Loan Association, and operates from Rolla in Missouri. The firm held consolidated assets worth $69m, including loans and net allowance worth $53m, and a total of $46m in deposits, as of September 2019.
Central president and chief executive officer William Stoltz said: “We are truly excited to be merging with Southern Missouri, an institution that has served the financial needs of America’s Heartland for over 130 years, in a transaction that will benefit our shareholders, our customers, our employees and our community.
“The merger will provide our customers with a greatly expanded array of products, services and locations.”
Southern Missouri Bancorp and Central Federal Bancshares merger details
The transaction is expected to be closed, subject to fulfilment of customary closing conditions, including regulatory and shareholder approvals, in the late second quarter of 2020.
For the transaction, the firm of Lewis Rice served as legal advisor, and Keefe, Bruyette & Woods, a Stifel company, served as a financial advisor to Central. Silver, Freedman, Taff & Tiernan served as legal advisor to Southern Missouri.
Operating in 47 locations in Missouri, Arkansas, and Illinois, Southern Missouri held approximately $2.3bn in consolidated assets, which include net loans worth $1.9bn and $1.9bn total deposits, as of September 2019.
Southern Missouri president and CEO Greg Steffens said: “Southern Missouri itself was originally a savings and loan association, and we retain an understanding of the needs and expectations of the customers of these organizations, as well as the commitment to service by their team members.
“We’re very excited to have the opportunity to serve Rolla, Missouri, and we look forward to welcoming the customers and staff of Central Federal Savings & Loan to our Southern Bank family.”
In November 2018, Southern Missouri Bancorp had closed its merger with Gideon Bancshares, the parent company for First Commercial Bank.
