QCR to enter Springfield, Mo., with bank acquisition
QCR Holdings in Moline, Ill., has agreed to buy Springfield Bancshares in Springfield, Mo.
The $4 billion-asset QCR said in a press release Wednesday that it will pay $86.7 million in cash and stock for the parent of the $560 million-asset Springfield First Community Bank. The deal, which is expected to close in the third quarter, prices Springfield Bancshares at 189% of its tangible book value.
The move represents QCR’s entry into the Springfield market. Springfield First, which will retain its name a brand, has one branch, $479 million in loans and $445 million in deposits.
“We believe that Springfield Bancshares is a good strategic and cultural fit,” Douglas Hultquist, QCR’s president and CEO, said in the release. “Similar to QCR Holdings, Springfield Bancshares values innovation, collaboration and achievement while focusing on exceptional client-based relationships.”
QCR said that, excluding $7.5 million in merger-related expenses, the deal should be 8% accretive to its 2019 earnings per share. It should take about three years to earn back the expected 4% dilution to QCR’s tangible book value.
QCR said it expects to cut about 16% of Springfield’s annual expenses, or $3 million.
Keefe, Bruyette & Woods and Barack Ferrazzano Kirschbaum & Nagelberg advised QCR. D.A. Davidson and Stinson Leonard Street advised Springfield Bancshares.