We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Equity Bancshares (EQBK) Inks Deal to Buy Bank of Kirksville
Read MoreHide Full Article
Equity Bancshares, Inc. (EQBK - Free Report) , the holding company for Equity Bank (Equity), signed a definitive merger agreement to acquire Rockhold Bancorp, the parent company of the Bank of Kirksville in an all-cash merger transaction.
Following the announcement of this deal, shares of EQBK jumped 10.5% on the NYSE on Dec 6.
The closing of the deal, subject to regulatory approval and satisfaction of customary closing conditions, is expected in first-quarter 2024. Notably, Rockhold's sole shareholder has already approved the transaction.
Bank of Kirksville currently operates through eight locations in North Central Missouri that includes three in Kirksville and one each in LaPlata, Downing, Memphis, Macon and Moberly. Bank of Kirksville’s consolidated total assets were $406 million as of Sep 30, 2023. Its total deposits, core deposits and loans summed up to $344 million, $311 million and $122 million, respectively, as of the same date.
Merger Agreement Details
Per the terms of this agreement, the actual transaction value of $44.3 million may be subject to adjustment based on adjusted equity capital of Rockhold as of the deal closure.
Equity expects the transaction to be 36 cents or 12% accretive to earnings per share (EPS) in 2024, and 45 cents or 14.3% accretive to EPS in 2025. It also anticipates the tangible book value earn back of nearly 1.3 years.
In addition, the deal will add eight locations of Bank of Kirksville. With this, Equity’s pro-forma will have a network of 74 bank locations, with 23 offices in Missouri and $5.4 billion in total assets. Also, Norman Belitz, CEO of Bank of Kirksville, will join Equity Bank as regional market president.
Management Comments
Brad Elliott, chairman & CEO of Equity, commented, “We couldn’t be more pleased to add another strong community bank to our network and continue to serve our Missouri customer base with additional locations, technology, and customized solutions for businesses and families. Our teams continue to work diligently to add customers, colleagues, and market locations within our four-state footprint, and we’re pleased to enter Kirksville and serve a vibrant customer base.”
Norman Belitz, CEO of Bank of Kirksville, stated, “We are proud of our newest chapter, joining Equity Bank. Each bank has roots in community values, and dedication to Missouri customers. Equity is committed to our region and serves customers like ours with sophisticated loan, deposit, and online banking products.”
Bond Portfolio Repositioning
Equity also disclosed that it sold approximately $442 million of available-for-sale investment securities, resulting in an after-tax loss of around $38.2 million. Nonetheless, the transaction will have no impact on tangible common equity and will enhance balance sheet efficiency.
The assets sold mostly consist of treasury, agency and mortgage-backed securities, with a weighted average yield of 1.33%. The company will redeploy the proceeds in cash, investment and loan assets with an expected yield of more than 5%. Equity anticipates the repositioning will contribute additional annual interest income of nearly $16.2 million, producing estimated earnings per share accretion of 81 cents in 2024.
Our Take
Equity has successfully acquired 22 combined whole-bank, deposit or branch acquisitions since 2002, with 10 of those being whole-bank transactions since the company's IPO in 2015.
Driven by these expansion initiatives, Equity will continue to record solid revenues across diverse footprint and businesses. Also, higher interest rates will offer support.
Over the past six months, shares of EQBK have risen 18.4% compared with the industry's 6.3% growth.
The all-stock merger deal between Banc of California, Inc. (BANC - Free Report) and PacWest Bancorp wrapped up last month. Per the terms of the agreement, PacWest merged into Banc of California, and Banc of California, N.A. merged into Pacific Western Bank.
The deal received shareholder approvals in late November. All necessary regulatory approvals for the merger (announced in July) were received in October.
The combined company is the third-largest bank based in California. Jared Wolff, CEO and president of BANC said, “By combining the best of two well-respected banks, we have created one of the nation’s premier, relationship-focused business banks. We look forward to sharing our expanded capabilities with clients and all the communities we serve.”
LCNB Corp. (LCNB - Free Report) , the holding company for LCNB National Bank, has signed a definitive agreement to acquire Eagle Financial Bancorp, Inc. in a stock-and-cash transaction. The closing of the deal, subject to approval of EFBI shareholders and regulators, and other customary conditions, is expected in the second quarter of 2024. The approval of LCNB shareholders is not required.
Eagle Financial, the holding company for EAGLE.bank, is a full-service banking institution with three offices in Cincinnati, OH. As of Sep 30, 2023, it had approximately $175.8 million in assets, $140.8 million in loans, $135 million in deposits and $26.3 million in consolidated stockholders’ equity.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Equity Bancshares (EQBK) Inks Deal to Buy Bank of Kirksville
Equity Bancshares, Inc. (EQBK - Free Report) , the holding company for Equity Bank (Equity), signed a definitive merger agreement to acquire Rockhold Bancorp, the parent company of the Bank of Kirksville in an all-cash merger transaction.
Following the announcement of this deal, shares of EQBK jumped 10.5% on the NYSE on Dec 6.
The closing of the deal, subject to regulatory approval and satisfaction of customary closing conditions, is expected in first-quarter 2024. Notably, Rockhold's sole shareholder has already approved the transaction.
Bank of Kirksville currently operates through eight locations in North Central Missouri that includes three in Kirksville and one each in LaPlata, Downing, Memphis, Macon and Moberly. Bank of Kirksville’s consolidated total assets were $406 million as of Sep 30, 2023. Its total deposits, core deposits and loans summed up to $344 million, $311 million and $122 million, respectively, as of the same date.
Merger Agreement Details
Per the terms of this agreement, the actual transaction value of $44.3 million may be subject to adjustment based on adjusted equity capital of Rockhold as of the deal closure.
Equity expects the transaction to be 36 cents or 12% accretive to earnings per share (EPS) in 2024, and 45 cents or 14.3% accretive to EPS in 2025. It also anticipates the tangible book value earn back of nearly 1.3 years.
In addition, the deal will add eight locations of Bank of Kirksville. With this, Equity’s pro-forma will have a network of 74 bank locations, with 23 offices in Missouri and $5.4 billion in total assets. Also, Norman Belitz, CEO of Bank of Kirksville, will join Equity Bank as regional market president.
Management Comments
Brad Elliott, chairman & CEO of Equity, commented, “We couldn’t be more pleased to add another strong community bank to our network and continue to serve our Missouri customer base with additional locations, technology, and customized solutions for businesses and families. Our teams continue to work diligently to add customers, colleagues, and market locations within our four-state footprint, and we’re pleased to enter Kirksville and serve a vibrant customer base.”
Norman Belitz, CEO of Bank of Kirksville, stated, “We are proud of our newest chapter, joining Equity Bank. Each bank has roots in community values, and dedication to Missouri customers. Equity is committed to our region and serves customers like ours with sophisticated loan, deposit, and online banking products.”
Bond Portfolio Repositioning
Equity also disclosed that it sold approximately $442 million of available-for-sale investment securities, resulting in an after-tax loss of around $38.2 million. Nonetheless, the transaction will have no impact on tangible common equity and will enhance balance sheet efficiency.
The assets sold mostly consist of treasury, agency and mortgage-backed securities, with a weighted average yield of 1.33%. The company will redeploy the proceeds in cash, investment and loan assets with an expected yield of more than 5%. Equity anticipates the repositioning will contribute additional annual interest income of nearly $16.2 million, producing estimated earnings per share accretion of 81 cents in 2024.
Our Take
Equity has successfully acquired 22 combined whole-bank, deposit or branch acquisitions since 2002, with 10 of those being whole-bank transactions since the company's IPO in 2015.
Driven by these expansion initiatives, Equity will continue to record solid revenues across diverse footprint and businesses. Also, higher interest rates will offer support.
Over the past six months, shares of EQBK have risen 18.4% compared with the industry's 6.3% growth.
Image Source: Zacks Investment Research
Currently, EQBK carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inorganic Expansion Efforts by Other Banks
The all-stock merger deal between Banc of California, Inc. (BANC - Free Report) and PacWest Bancorp wrapped up last month. Per the terms of the agreement, PacWest merged into Banc of California, and Banc of California, N.A. merged into Pacific Western Bank.
The deal received shareholder approvals in late November. All necessary regulatory approvals for the merger (announced in July) were received in October.
The combined company is the third-largest bank based in California. Jared Wolff, CEO and president of BANC said, “By combining the best of two well-respected banks, we have created one of the nation’s premier, relationship-focused business banks. We look forward to sharing our expanded capabilities with clients and all the communities we serve.”
LCNB Corp. (LCNB - Free Report) , the holding company for LCNB National Bank, has signed a definitive agreement to acquire Eagle Financial Bancorp, Inc. in a stock-and-cash transaction. The closing of the deal, subject to approval of EFBI shareholders and regulators, and other customary conditions, is expected in the second quarter of 2024. The approval of LCNB shareholders is not required.
Eagle Financial, the holding company for EAGLE.bank, is a full-service banking institution with three offices in Cincinnati, OH. As of Sep 30, 2023, it had approximately $175.8 million in assets, $140.8 million in loans, $135 million in deposits and $26.3 million in consolidated stockholders’ equity.