Southern Missouri Bancorp in Pine Bluff, Mo., has agreed to buy Gideon Bancshares in Dexter, Mo.

The $1.8 billion-asset Southern Missouri said in a press release Tuesday that it will pay $22.7 million in cash and stock for the parent of the $223 million-asset First Commercial Bank. The deal is expected to close in the fourth quarter.

Gideon has ten branches, $145 million in loans and $176 million in deposits in southeast Missouri.

“We are pleased to add a number of very fine communities to those we serve,” Greg Steffens, Southern Missouri’s president and CEO, said in the release. “Several of First Commercial’s locations quite nicely complement our existing network of community bank facilities.”

Brett Dorton, First Commercial’s president, is expected to join the executive management team of Southern Missouri’s bank.

It should take about a year for Southern Missouri to earn back the expected 1% dilution to its tangible book value. Excluding merger-related expenses, the acquisition is expected to be immediately accretive to Southern Missouri’s earnings per share.

Yewell G. Lawrence advised Gideon. Silver, Freedman, Taff & Tiernan advised Southern Missouri.

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.