The Stitt Family Trusts signed a stock purchase agreement to acquire more than 85% of Cherokee, Okla.-based Farmers Exchange Bank, a unit of Farmers Exchange Bancorp Inc.
Terms of the deal were not disclosed.
For reference, SNL valuations for bank and thrift targets in the Southwest region between Aug. 8, 2017, and Aug. 8, 2018, averaged 184.15% of book and 194.46% of tangible book and had a median of 20.79x last-12-months earnings, on an aggregate basis.
Farmers Exchange Bank operates two branches in Kay County, Okla., ranked sixth with a 2.6% share of approximately $884.31 million in total market deposits. It operates two branches in Grant County, Okla., ranked fifth with a 10.98% share of approximately $225.54 million in total market deposits, and operates two branches in Alfalfa County, Okla., ranked first with a 64.03% share of approximately $397.47 million in total market deposits.
The Stitt Family Trusts collectively own 100% of Gateway Mortgage Group LLC. Following the acquisition, it plans to merge Gateway Mortgage into Farmers Exchange Bank.
Donald Powell, former chairman of the Federal Deposit Insurance Corp. under President George W. Bush, plans to join the resulting bank's board.
Shapiro Bieging Barber Otteson LLP served as outside legal counsel to the Stitt Family Trusts and Gateway Mortgage. Fenimore Kay Harrison & Ford LLP served as outside legal counsel to Farmers Exchange Bank.