Poplar Bluff - Southern Missouri Bancorp, Inc. (“Southern Missouri,” NASDAQ: SMBC), parent company of Southern Bank, Poplar Bluff, Missouri, announced that its merger with Central Federal Bancshares, Inc. (“Central”), Rolla, Missouri, was completed today. Central was the parent company of Central Federal Savings & Loan Association of Rolla (“Central Federal”), which was merged with and into Southern Bank.
Following the completion of the merger, Southern Missouri now operates 48 banking facilities in Missouri, Illinois, and Arkansas. Greg Steffens, President and Chief Executive Officer of Southern Missouri, commented, “We welcome the Central Federal team members and customers to the Southern Bank family, and we look forward to being a part of the Rolla community. As this merger is taking place in the midst of an unusual and difficult time for our nation’s public health and our national and regional economies, we believe we can help Central Federal customers and the Rolla market meet these challenges. We want to be a dependable partner in the community, living our vision as a bank with ‘Strong Roots, Strong Branches.’ We do that by placing an emphasis on impeccable customer service and innovative technology, and we’re excited to help people do big things in Rolla.”
As a result of the merger, each share of Central common stock held immediately prior to completion of the merger is being exchanged for $15.90 in cash.Southern Missouri paid approximately $21.9 million in cash merger consideration.
At March 31, 2020, Central reported total consolidated assets of $70.1 million, including loans, net, of $52.2 million, and deposits of $46.3 million. On a pro forma basis, the combined entity will hold assets of approximately $2.4 billion, including loans, net, of $2.0 billion, and deposits of $2.0 billion. The transaction is expected to be accretive to earnings per share within six months of closing, exclusive of nonrecurring transaction expenses, and accretive to tangible book value per common share in approximately two years, based on the crossover method.
The firm of Lewis Rice, LLC served as legal advisor to Central, while Silver, Freedman, Taff & Tiernan LLP served as legal advisor to Southern Missouri. Keefe, Bruyette & Woods, a Stifel Company, served as financial advisor to Central.