Southern Bank now operates 65 facilities across Missouri, Kansas, Illinois and Arkansas with the completion Friday of another merger.
The combined entity will hold assets of approximately $4.4 billion, including loans, net, of $3.4 billion, and deposits of $3.8 billion, officials said in a press release. Completion of the merger was said in September to make it the eighth-largest bank headquartered in Missouri.
The Poplar Bluff-based financial institution merged with Citizens Bancshares of Kansas City. It was the parent company of Citizens Bank & Trust Company, which is now a subsidiary of Southern.
“We are very pleased to welcome the team members and valued customers of Citizens Bank & Trust Company to our Southern Bank family,” said Greg Steffens, chairman and chief executive officer of Southern. “We are looking forward to participating in the continued growth of the excellent communities they call home, including the Kansas City metropolitan area, and Citizens’ strong core deposit base will be a meaningful addition to our funding mix.”
Southern paid approximately $131.4 million in merger consideration, comprised of stock and cash at a 74:26 ratio.
On Dec. 31, Citizens reported total consolidated assets of $973 million, including loans, net, of $463 million, and deposits of $838 million.
The merger was expected when announced to make Southern Bank the 12th largest in deposit market share in Missouri, according to a press release.
The firm of Stinson LLP served as legal advisor to Citizens, while Silver, Freedman, Taff & Tiernan LLP served as legal advisor to Southern. D.A. Davidson served as financial advisor to Citizens and Piper Sandler served as financial advisor to Southern Missouri.
As a result of the merger, each share of Citizens common stock held immediately prior to completion of the merger is being exchanged for 1.1755 shares of Southern common stock or $54.93 in cash at the election of the shareholders, officials said.
Bank officials announced the merger deal was signed Sept. 20.
“A presence in Kansas City helps transform Southern Missouri into a more significant statewide player in Missouri as we continue to build long-term shareholder value,” Steffens said at the time.
This deal marks Southern Bank’s expansion into Kansas City, following growth in February 2022 into St. Louis through a merger with FortuneBank, officials said.
Southern Bank was established by depositors in 1887 as Poplar Bluff Loan and Building. With assets of $100,000, it was created to provide financing for customers purchasing homes. It began to expand outside of Poplar Bluff in 1969, company officials have previously told the Daily American Republic. Its first branch was located in Dexter.
Southern became a publicly traded stock company in 1994, a move that helped grow the company, officials said in 2018.