In Kansas, Belleville-based Astra Bank has applied to acquire Midwest Community Bank of Plainville. Astra and Midwest Community are the respective subsidiaries of First Belleville Bancshares Inc. and Palco Bankshares Inc.
First Belleville will incur debt in connection with the deal but expects to maintain its long-term capital goals, according to a regulatory filing recently acquired by S&P Global Market Intelligence.
Should the parties complete the merger, Midwest's two branches will remain open, and Astra's banking operations in Plainville will transfer to one of Midwest's offices in the same city. Most of Midwest's staff will be retained.
SNL data shows that Astra Bank had assets of $256.2 million as of Sept. 30; Midwest Community had $61.4 million.
The deal value, according to SNL data, is 103.4% of book, 105.5% of tangible book and 15.0x last-12-months earnings, on an aggregate basis. The price represents 17.72% of deposits and 13.03% of assets. The tangible book premium-to-core deposits ratio is 1.22%.
First Belleville Bancshares Inc. will expand in Rooks County, Kan., by two branches to be ranked second with a 35.88% share of approximately $157.5 million in total market deposits.
Hampton & Royce LC served as First Belleville's legal counsel in this transaction.