Equity Bancshares in Wichita, Kan., has agreed to buy Lincoln Bancorp in Reinbeck, Iowa.
The $7.7 billion-asset Equity said in a press release that it will pay $123.8 million in cash and stock for the $1.7 billion-asset parent of Lincoln Savings Bank. The deal is expected to close in the fourth quarter.
“This partnership marks an important step in our long-term strategy for Iowa,” Brad Elliott, Equity’s chairman and CEO, said in the release. “This merger brings resources, scale, and enhanced opportunities for the customers and communities we will have the privilege of continuing to serve.”
Lincoln has $1.2 billion in loans and $1.5 billion in deposits.
The deal is expected to be 5.1% accretive to Equity’s 2027 earnings per share, excluding one-time expenses. It should take less than three years for Equity to earn back any dilution to its tangible book value.
Equity was advised by Hovde Group and Norton Rose Fulbright US. Lincoln was advised by Stephens and Alston & Bird.