QCR Holdings in Moline, Ill., has agreed to buy Guaranty Federal Bancshares in Springfield, Mo.
The $6 billion-asset QCR said in a press release Tuesday that it will pay $151.6 million in cash and stock for the $1.2 billion-asset Guaranty Federal. The deal is expected to close in the first or second quarter.
“Springfield and neighboring southwest Missouri markets make up a vibrant region where strong relationships with our clients matter,” Larry Helling, QCR’s CEO, said in the release.
Guaranty has 16 branches and $1 billion of deposits.
Monte McNew, Springfield First’s president and CEO, will remain the bank’s CEO. Shaun Burke, Guaranty Bank’s president and CEO, will become Springfield First’s president.
QCR said it expects the deal to be 13% accretive to its earnings per share in the first full year, excluding merger-related charges. It should take less than three years to earn back an estimated 5% dilution to QCR’s tangible book value.