Guaranty Federal Bancshares in Springfield, Mo., has agreed to buy Hometown Bancshares in Carthage, Mo.

The $767 million-asset Guaranty said in a press release Friday that it will pay $4.6 million in cash for the $183 million-asset Hometown. The deal is expected to close in the first quarter.

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The deal would fulfill one of Guaranty Federal Bancshares' goals: to further expand in the Joplin, Mo., area, says Guaranty CEO Shaun Burke.

“Hometown and Guaranty were built based upon their communities’ needs for a bank that could deliver local, customized financial products and solutions,” Shaun Burke, Guaranty’s president and CEO, said in the release. “This transaction also provides the opportunity for Guaranty to fulfill a strategic objective of further expansion in the Joplin" metropolitan statistical area.

Guaranty opened a loan production office in Joplin in April 2016.

Guaranty said the deal should be more than 20% accretive to its earnings and take about three years to earn back the expected 7% dilution to Guaranty’s tangible book value.

Raymond James and Barack Ferrazzano Kirschbaum & Nagelberg advised Guaranty. Capital Corp. and Stinson Leonard Street advised Hometown.

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