In its May 1 filing with the Federal Reserve Bank of St. Louis, Paramount Financial Group LLC applied to become a bank holding company by acquiring all 590,100 issued and outstanding common shares of Hazelwood, Mo.-based Superior Bank from Superior Bancshares Inc., according to a Form Y-3 recently obtained by S&P Global Market Intelligence.
SNL valuations for bank and thrift targets in the Midwest region between March 16, 2016, and March 17, 2017, averaged 138.85% of book, 142.50% of tangible book and had a median of 19.76x last-12-months earnings, on an aggregate basis.
As of March 31, Superior Bank had assets of approximately $25.2 million.
Paramount Financial intends to merge its current mortgage company subsidiary, St. Louis-based Paramount Bond &Mortgage Co. Inc., into Superior Bank following deal completion and once the bank has strengthened financially.
Current Superior Bank Directors Denis Heneghan, Sandford Miller, Joe Niknejadi, Gene Reynolds and Scott Thompson will no longer be directors of the bank once the deal is completed.
Superior Bank President and CEO Kristofer Weidenbenner will remain on the bank's board, post-deal. The rest of the bank's board will be comprised of Paramount Financial CEO David Griege, President Kenneth Niemann, Secretary/Treasurer H. John Frank Jr., and General Counsel Tyler Frank.
Joseph Porter Jr. of Armstrong Teasdale LLP served as legal counsel for Paramount Financial.
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