Commerce Bancshares, Inc. (CBSH - Free Report) announced the completion of its acquisition of Summit Bancshares, Inc. of Tulsa and Oklahoma City. The deal was announced in May 2013.
The deal was valued at nearly $44 million in Commerce Bancshares’ stock. Summit Bancshares, with $206 million in loans and $230 million in deposits, merged with Commerce Bancshares on Sep 1. Now, the combined entity has roughly $454 million in loans and $363 million in total deposits, with more than 1,300 business banking relationships in Oklahoma.
Commerce Bancshares has about 360 locations in Missouri, Illinois, Kansas, Colorado and Oklahoma. Currently, the company provides loans worth an annual average of $384 million in Oklahoma. With the completion of the transaction with Summit Bancshares, the company will be able to offer loans worth approximately $600 million to its clients in Oklahoma.
This is the first major acquisition by Commerce Bancshares since the financial crisis. Earlier in 2007, the company had acquired Commerce Bank for $29.5 million. In 2006, Commerce Bancshares acquired 2 firms, namely South Tulsa Financial Corporation for about $26.2 million in stock and West Pointe Bancorp, Inc. for $80.9 million in a stock-cum-cash deal.
The acquisition of Summit Bancshares will aid Commerce Bancshares in expanding its operations. The company plans to convey the changes related to the transition to Summit Bancshares' customers in the upcoming weeks.
We expect the deal to auger well for Commerce Bancshares’ revenue growth. Moreover, the deal will strengthen the company’s market share and footprint.
Currently, Commerce Bancshares carries a Zacks Rank #3 (Hold). In the same sector, better performing stocks include PrivateBancorp, Inc. , First Interstate Bancsystem Inc. (FIBK - Free Report) and Mercantile Bank Corp. (MBWM - Free Report) . All these carry a Zacks Rank #1 (Strong Buy).