Mountain Grove, Mo.-based First Bancshares Inc. will acquire Colorado Springs, Colo.-based Stockmens Bank in an all-stock deal.
Under the deal, First Home Bank will be merged into Stockmens Bank. First Bancshares will subsequently own a banking subsidiary operating as Stockmens Bank in Colorado, State Bank of Bartley in Nebraska and First Home Bank in Missouri. R. Bradley Weaver will remain First Home chairman and CEO; Robert Alexander stays on as chairman and CEO of Stockmens Bank. Alexander will take on the additional title of First Bancshares chairman, a post currently held by Weaver.
The transaction, still subject to regulatory approvals, is scheduled to close in the second half.
SNL valuations for bank and thrift targets in the Southwest region between March 29, 2016, and March 29, 2017, averaged 160.11% of book and 177.37% of tangible book and had a median of 21.79x last-12-months earnings, on an aggregate basis.
According to the March 29 press release, First Home Bank has $219 million in assets and eight branch locations in Southwest Missouri, while Stockmens Bank has $114 million in assets and two branches located in Colorado Springs and Bartley, Neb.
Based on data collected by SNL, First Bancshares Inc. will enter El Paso County, Colo., with one branch to be ranked No. 20 with a 0.99% share of approximately $7.43 billion in total market deposits and will enter Red Willow County, Neb., with one branch to be ranked seventh with a 3.60% share of approximately $506.32 million in total market deposits.
SNL data is an offering of S&P Global Market Intelligence.