The Bank Slate


Equity Bancshares beefing up in Kansas with latest deal

Equity Bancshares in Wichita, Kan., is bolstering operations in its home state with an agreement to buy American State Bancshares in Wichita. 

The $4.2 billion-asset Equity said in a press release Monday that it will pay $73.6 million in stock for the parent of the $779 million-asset American State Bank. About $6.6 million of American State preferred stock will be redeemed when the deal closes. 
The deal, which is expected to close in early October, priced American State at 111% of its tangible book value. American State has 17 branches in Kansas, along with $653 million of deposits and $479 million of loans. 
American State “is an excellent community bank, and its leadership and customer bases share a like mind with ours, valuing customized personal service, and entrepreneurial spirit,” Brad Elliott, Equity’s chairman and CEO, said in the release. 
“Kansas is home to numerous, thriving communities with customers who desire a community banking approach, and our institutions match up well in terms of mindset and geographic fit,” Elliott added. 
Doug Thurman, American State’s president and CEO, and the bank’s leaders will remain at Equity. Lee Borck, American State’s chairman, will join Equity’s board. 
The deal would be Equity’s 10th bank acquisition since its 2015 initial public offering. 
The transaction is expected to be 15.9% accretive to Equity’s 2022 earnings per share, excluding merger-related expenses. It should take less than three years for Equity to earn back an expected 3.7% dilution to its tangible book value. 
Equity plans to cut about 34% of American State’s annual operating expenses, or roughly $5.8 million. The company said it expects to incur $11.2 million of merger-related expenses. 
Equity was advised by Stephens and Norton Rose Fulbright US. American State was advised by D.A. Davidson and Stinson.

Leave a Reply

Your email address will not be published. Required fields are marked *