Farmers & Merchants State Bank of Neola is set to merge into Council Bluffs, Iowa-based Midstates Bank NA.
The terms of the transaction were not disclosed.
The deal is expected to close Aug. 30, according to an announcement posted on Midstates Bank's website. Farmers & Merchants is based in Neola, Iowa.
S&P Global Market Intelligence valuations for bank and thrift targets in the Midwest region between May 15, 2018, and May 15, 2019, averaged 149.14% of book, 154.86% of tangible book and had a median of 19.32x LTM earnings on an aggregate basis.
Midstates Bancshares will expand in Pottawattamie County, Iowa, by two branches to be ranked fifth with a 9.12% share of approximately $1.8 billion in total market deposits.
The merged bank will have more than $575 million in assets, Midstates Bank said.
Midstates Bank is a unit of Midstates Bancshares Inc.; Farmers & Merchants State Bank of Neola is a unit of FMSB Bancorp.