Equity Bancshares in Wichita, Kan., has agreed to buy NBC Corp. of Oklahoma in Oklahoma City.
The $5.3 billion-asset Equity said in a press release that it will pay $86.9 million in cash and stock for the parent of the $909 million-asset NBC Oklahoma. The deal is expected to close in the third quarter.
“This partnership builds on our shared commitment to the communities we serve and enhances our ability to provide exceptional financial services to the Oklahoma City metro and [surrounding] communities, a southern expansion we are excited to take on with the NBC team,” Brad Elliott, Equity’s chairman and CEO, said in the release.
“The NBC franchise is similar to Equity from a customer and deposit mix standpoint,” he added. “By combining our resources, expertise, and shared values, we look forward to driving growth and delivering even greater value to our customers and stockholders.”
H. K. Hatcher, NBC’s president and CEO, and local NBC leaders will join Equity. Ken Fergeson, NBC’s chairman, will join Equity’s board.
The deal is expected to be 12.5% accretive to Equity’s 2026 earnings per share, excluding one-time transaction expenses and including cost savings. It should take less than three years for Equity to earn back any dilution to its tangible book value.
Equity, which has no plans to close any of NBC’s seven branches, plans to cut 34.5% of NBC’s annual noninterest expenses. Equity expects to incur $9.1 million in merger-related expenses.
Equity was advised by Keefe, Bruyette & Woods and Norton Rose Fulbright US. NBC was advised by D.A. Davidson and McAfee & Taft.