Equity Bancshares to acquire Bank of Kirksville for $44.3M cash; also sells $442M bond portfolio to boost earnings

EQUITY BANCSHARES INC

Equity Bancshares (EQBK) to acquire Rockhold BanCorp (Bank of Kirksville) for $44.3M cash; expected close Q1 2024.
Acquisition expected to be $0.36 or 12% accretive to 2024 EPS; tangible book value earn back ~1.3 years.
Bank of Kirksville had $406M assets, $344M deposits, $122M loans as of Sep 30, 2023; will add 8 locations.
Sold $442M of AFS securities with 1.33% yield, realizing $38.2M after-tax loss; proceeds to be redeployed at >5% yield.
Bond repositioning expected to generate $16.2M additional annual interest income, $0.81 EPS accretion in 2024.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.99

EQUITY BANCSHARES INC entered into Agreement and Plan of Merger with Rockhold BanCorp valued at aggregate merger consideration payable is $44,304,000 in cash (effective 2023-12-05).

Action: entry
Agreement: merger
Counterparty: Rockhold BanCorp
Value: aggregate merger consideration payable is $44,304,000 in cash
Effective: 2023-12-05

Exact text from the filing

On December 5, 2023, Equity Bancshares, Inc. (the “Company”), a Kansas corporation and the parent company of Equity Bank (“Equity Bank”), a Kansas state bank, entered into an Agreement and Plan of Merger (the “Agreement”), by and among the Company, Truman Merger Sub, Inc. (“Merger Sub”), a Missouri corporation and a wholly owned subsidiary of the Company, Rockhold BanCorp (“Rockhold”), a Missouri corporation and the parent company of Bank of Kirksville (“Bank of Kirksville”), a Missouri state bank, and Rennetta Rockhold, in her capacity as trustee of, and on behalf of, The Rockhold BanCorp Stock Trust, a trust created under the laws of the State of Missouri and the sole shareholder of Rockhold (the “Rockhold Trust”).

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Source: SEC EDGAR

accession 0001193125-23-289533

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