A group of investors has reached a deal to acquire Town and Country, Mo.-based St. Louis Bank, the St. Louis Business Journal reported Dec. 7.
Under the agreement, bank shareholders may opt to keep their shares or tender them — either 55% of their holdings at $6.75 per share or 75% at $6.38 per share. The terms place the deal value within the $25 million-to-$34 million range, according to the publication.
SNL calculates that the deal value is 111.5% of book and tangible book, and 18.2x earnings, on an aggregate basis. It is 12.25% of deposits, 10.75% of asssets and the tangible book premium-to-core deposits ratio is 6.46%.
St. Louis Bank operates one branch in Saint Louis County, Mo., ranked No. 19 with a 0.84% share of approximately $48.36 billion in total market deposits.
For comparison, SNL valuations for bank and thrift targets in the Midwest region between Dec. 7, 2016, and Dec. 7, 2017, averaged 159.78% of book, 165.45% of tangible book and had a median of 20.60x last-12-months earnings, on an aggregate basis.
The investor group, which plans to inject $5 million in new equity, is led by Travis Liebig. Liebig had previously served as Simmons Bank's St. Louis market president and will become St. Louis Bank's CEO. Incumbent CEO Mark Muesenfechter will transition into the role of CFO.
The deal is still subject to regulatory approval, but is expected to close in early 2018. St. Louis Bank had $421.7 million in assets as of Sept. 30.