Equity Bancshares in Wichita, Kan., has agreed to buy Kansas Bank Corp. in Liberal and Adams Dairy Bancshares in Blue Springs, Mo.
The $3 billion-asset Equity said in a press release Monday that it will pay $45.1 million in cash and stock for Kansas Bank, the $310 million-asset parent of First National Bank of Liberal/Hugoton. In a separate transaction, it will pay $15.8 million in cash and stock for the $127 million-asset Adams Dairy.
The deals are expected to close in the second quarter. Equity has completed 15 acquisitions in the past 16 years, including five since its November 2015 initial public offering.
“We’ve been fortunate to work with strong community banks in our four states to deliver an outstanding banking experience to customers in diverse markets,” Brad Elliott, Equity’s chairman and CEO, said in the release.
First National “is key for our expanding western Kansas footprint and represents the addition of the market leader in southwest Kansas,” Elliott added. “In the competitive Kansas City market, Adams Dairy matches up extremely well with our commercial philosophy, and represents our continued dedication to entrepreneurship.”
Tina Call, First National’s president and CEO, will stay with Equity to run its southwest Kansas market.
Equity said it expects the First National deal to be 6 cents accretive to its 2018 earnings per share and add 10 cents the following year. It expects to incur $6.1 million in merger-related expenses. It should take about 2.8 years to earn back the deal’s 1.8% dilution to Equity’s tangible book value.
Adams Dairy is expected to be 3 cents accretive to Equity’s 2018 earnings per share, while adding 5 cents in 2019. It should take 2.7 years to earn back the expected 0.5% dilution to Equity’s tangible book value. Equity said it expects to incur $2.8 million of merger-related expenses.
Keefe, Bruyette & Woods advised Equity on the Kansas Bank acquisition, while Stephens provided advice for Adams Dairy. Norton Rose Fulbright served as legal counsel for both deals.
Kansas Bank was advised by Sheshunoff and Co. and Foulston Siefkin. Adams Dairy was advised by The Capital Corporation and Stinson Leonard Street.