Missouri-based bank Central Bancompany has agreed to acquire Liberty Bancorp, the parent company of BankLiberty, in a deal worth $103.7m.
Under the terms of the agreement, BankLiberty will be merged into Central Bank of the Midwest, an affiliate of Central Bancompany, subject to the state regulatory authority of Missouri and the approval of Liberty shareholders.
Pursuant to the deal, Liberty common shareholders will receive $42 in cash for each of the shares they own. Furthermore, Liberty option holders will get cash equal to the difference between $42 and the exercise price of their in-the-money options.
Liberty Brent Giles chairman and CEO said: “We are excited to join Central Bank of the Midwest and continue our longstanding commitment to the community, with greater resources and financial services for our existing customers and employees, as part of the Central Bank family in the Northland.”
Upon closing of the deal, the Central Bank of the Midwest is expected to have combined assets valued at $2.3bn, with $1.7bn in loans and $1.9bn in deposits.
By adding 13 branches in the Northland and Independence areas, the total number of Central Bank of the Midwest branches will reach 46, serving 25 communities across Greater Kansas City and Lawrence.
Central Bank of the Midwest’s customers will have access to more than 150 branches and network of ATMs across the nation, under the dogwood logo and through the MoneyPass network.
Central Bank of the Midwest president and CEO Bill Ferguson said: “This opportunity allows us to expand our footprint north of the river in Kansas City, an area we have wanted to be in for some time.
“We are excited to join BankLiberty in making this partnership a reality in the Northland. Their commitment to financial strength and local decision-making is a perfect fit for our Central Bank family.”
The transaction could be completed in the third quarter of this year, subject to the approval of regulatory authorities and Liberty’s shareholders, along with certain other closing conditions.