ST. LOUIS - Mercantile Bancorp. said it has agreed to acquire Metro Savings Bank, headquartered in Wood River, Ill.

Metro Savings is an $84 million-asset federal savings bank based in Madison County, Ill., across the Mississippi River from St. Louis. Mercantile said it plans to combine Metro Savings with Mercantile Bank of Illinois, which currently operates 10 offices in three counties.

According to the agreement, Mercantile will issue 199,446 shares of common stock in exchange for Metro's outstanding common stock. The transaction is subject to shareholder and regulatory approval.

Mercantile also said it may purchase up to 19,900 shares of its own common stock in open-market transactions.

Based in St. Louis, Mercantile Bancorp. owns 53 financial institutions in Missouri, Kansas, Illinois, Iowa, and Arkansas. It has $15.3 billion in assets.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.