A Kansas banking company that last week raised fresh capital to fuel its growth has struck a deal that would more than double its size.
The lead banking unit of Equity Bancshares of Wichita, Kan., announced Tuesday that is buying the $637 million-asset First Community Bank of Lee's Summit, Mo., in a deal that would create a nearly $1.3 billion-asset bank with 30 branches in Kansas and Missouri.
Equity Bancshares operates Equity Bank in Andover, Kan., and the $5.6 million-asset Signature Bank in Haddam, Kan. First Community Bank would be merged into Equity Bank and Jack Fields, First Community Bank's chairman and chief executive, would join Equity as an executive vice president.
"Our solid capital base combined with geographic and market synergies of our banking offices in Kansas and Missouri will create the perfect platform for future growth," Brad Elliott, Equity Bank's chairman and chief executive, said in a news release.
Equity last week announced that it had raised $20.4 million in capital and that it planned to use the proceeds for acquisitions and organic growth.
Equity Bank's last acquisition was in 2008 when it bought Ellis State Bank in Kansas. Equity Bancshares is highly capitalized with a core capital leverage ratio of 11.27% and a total risk-based capital ratio of 17.87% at March 31, according to the Federal Deposit Insurance Corp.
At March 31, 2.55% of First Community's noncurrent loans totaled 2.55% and its core capital leverage ratio was 8.45%, according to the FDIC. It reported a net operating income of $813,000 as of March 31, according to the FDIC.
The financial terms of the deal, which is expected to close in the fourth quarter, were not disclosed.