A Missouri community bank remains firmly in expansion mode after completing a merger with a rival in Kansas City's fast-growing Northland region.
"We absolutely continue to be open to growth opportunities," Verimore Bank President and CEO Kristi Stuewe told American Banker Friday. "We don't want to grow for the sake of growth, but when the right opportunity comes along, we want to make sure we are positioned to take advantage."
Verimore is eyeing rural, as well as urban markets, Stuewe added. "We have a very long history of agricultural lending," she said. "That's something we've been doing for a long time."
The Brookfield, Missouri-based Verimore announced its merger with Clay County Savings Bank Wednesday, adding three branches and $116 million in deposits north of Kansas City. According to Stuewe, the population of the Northland region, made up of Clay and Platte counties, "is growing at a rate of three times the state's population growth."
"It's a very attractive place to be," Stuewe said. "Exciting things are going on in Clay County, that's for sure." At the same time, consolidation of local banks has resulted in fewer community banks and a migration of deposits to larger competitors.
"We see that as a tremendous opportunity for a bank like ours," Stuewe said. "Historically, we believe the Northland really appreciates the community bank model, the personalized services."
The consolidation of Clay County Savings Bank into the privately held Verimore comes about four months after the banks' holding companies merged, with Verimore's parent, Missouri First Bancshares, acquiring CCSB Holdings for an undisclosed sum.
Verimore
The deal made strategic as well as geographic sense by adding a strong mortgage banking operation to Verimore's established commercial- and agricultural-lending business lines. "We've expanded how we can help the businesses and households in Clay County and the products we can offer," Stuewe said. "The same customers who are operating in agriculture or own a small business, they also need a mortgage. To be able to handle that additional need for them is important to us."
Post-merger, Verimore reported assets topping $600 million, as well as eight branch locations, including four in Clay County, where it controls about 5% of the $5.6 billion deposit market, according to Federal Deposit Insurance Corp. statistics. The bank expects to retain the entire Clay County staff, according to Stuewe.
"Not only are we thrilled to have experienced people, and every one of them stay with us, we suspect we'll be expanding our workforce in the future," Stuewe said. "We have an expanded branch network in Clay County, great product offerings and experienced people. When we put all those things together, we see nothing but growth opportunities."
Clay County Savings Bank was founded in 1922. In recent years, its results were impacted by a long running legal dispute between the bank's management and an outside investor group. The bank struggled to break even in the two years leading up to its merger with First Missouri and Verimore.
Clay County Savings Bank "has an incredible customer base that we're really excited about," Stuewe said. "Bringing Verimore's infrastructure and product offering to that customer base, we immediately become better together."
