View Rolla community as poised for growth.
Southern Bank and Central Federal have signed a definitive merger agreement where Southern Missouri will acquire Central in an all cash-transaction.
Southern Missouri Bancorp, Inc., the parent corporation of Southern Bank, and Central Federal Bancshares, Inc., the parent corporation of Central Federal Savings and Loans Association, announced the signing of a definitive merger agreement. As part of the transaction, Central Federal will be merged with and into Southern Bank.
“We are truly excited to be merging with Southern Missouri, an institution that has served the financial needs of America’s Heartland for over 130 years, in a transaction that will benefit our shareholders, our customers, our employees and our community,” President and Chief Executive Officer of Central William Stoltz said.
Central operates one location in Rolla. At Sept. 30, 2019, Central’s consolidated assets were $69 million, including loans, net of allowance, of $53 million, while deposits totaled $46 million.
Southern Missouri operates 47 locations in Missouri, Arkansas and Illinois, and reported consolidated assets at Sept. 30, 2019, of $2.3 billion, including loans, net, of $1.9 billion, and total deposits of $1.9 billion.
Under the terms of the merger agreement, unanimously approved by the boards of directors of Central and Southern Missouri, Central shareholders will receive $15.90 in cash for each share of Central common stock, subject to adjustment for Central’s capital at closing.
The deal is valued at approximately $24 million, inclusive of the retirement of debt outstanding under Central’s Employee Stock Ownership Plan, according to a release on Friday.
“We’re very excited to have the opportunity to serve Rolla, Missouri, and we look forward to welcoming the customers and staff of Central Federal Savings and Loan to our Southern Bank family,” Greg Steffens, President and CEO of Southern Missouri said.
Southern Missouri and Central anticipate completion of the transaction late in the second calendar quarter of 2020, subject to satisfaction of customary closing conditions, including regulatory and shareholder approvals.
“As the home to the Missouri University of Science and Technology, a nationally-recognized, highly-selective institution focusing on a number of fields of study that will drive economic growth in coming decades, we see the Rolla community as poised for growth and one where we expect our products and services to be well-received,” Steffens said.