Equity Bank Expands in Missouri, Agrees to Acquire Three St. Joseph Branch Locations of Security Bank of Kansas City
WICHITA, Kansas (July 19, 2021) – Equity Bancshares, Inc. (“Equity” or the “Company”), announced that its subsidiary, Equity Bank, has entered into a definitive branch purchase and assumption agreement to acquire the assets and assume the deposits of three branch banking locations in St. Joseph, Missouri from Security Bank of Kansas City (“Security Bank”), a subsidiary of Valley View Bancshares, Inc. of Overland Park, Kansas. Equity anticipates closing the acquisition in the fourth quarter of 2021.
“We’re pleased with the opportunity to offer Equity Bank products and services to customers in Northwest Missouri, and St. Joseph is a great fit within our network,” said Brad Elliott, Chairman and CEO of Equity. “We’ve been able to grow loans, fee income and our core deposit base effectively in Western Missouri with a focus on local community banking, and we believe this approach will serve customers well in our new St. Joseph region.”
Currently, Security Bank operates three locations in St. Joseph with approximately $78 million in deposits. The branch locations of Security Bank to be acquired by Equity Bank are located at 602 Edmond Street, 401 N. Woodbine Road, and 5348 Lake Avenue.
Following the branch transaction, Equity will operate each of the three Security Bank locations in St. Joseph as Equity Bank locations. Joshua J. Means, President of Western Missouri, will oversee Missouri community bank locations. Equity will operate 16 total locations in Missouri, including eight bank locations in Western Missouri communities and five bank locations on the Missouri side of the Kansas City metropolitan area.
Equity expanded into Missouri in 2007 with the acquisition of a bank charter in Sarcoxie, Mo., before opening a loan production office in Lee’s Summit, Mo. Equity acquired First Community Bancshares, Inc. of Overland Park, Kansas and its 11 Missouri locations in October 2012, and acquired Adams Dairy Bancshares, Inc. of Blue Springs, Missouri in May 2018.
In Equity's Western Missouri region, deposits as of June 30, 2018, were $478.4 million, compared to $614.8 as of June 30, 2021. Total loans in Equity's Western Missouri region were $147.0 million as of June 30, 2018, compared to $218.3 million as of June 30, 2021, growing by 48.5% during the three-year period.
“Each of our Missouri locations delivers outstanding service to our consumer, mortgage and business customers and we expect St. Joseph to serve as a key market for us in Northwest Missouri. Josh Means and his regional leadership team have helped our local banks grow in loans, fee income and deposits, one relationship at a time,” said Mr. Elliott. “We’re eager to welcome talented community bankers to our Equity team and to offer St. Joseph-area consumers enhanced commercial and business banking solutions.”
Most recently, Equity announced its merger with American State Bancshares, Inc. (“ASBT”), a $780-million asset bank with headquarters in Wichita, Kansas and 16 American State Bank and Trust locations in its Kansas footprint. Equity will complete the merger with ASBT in October 2021, which will be the Company’s 18th bank combination, including 10 since the Company’s IPO in 2015.
Equity also completed an FDIC-assisted merger in October 2020, acquiring Almena State Bancshares in northwest Kansas. A pro forma Equity Bank in December 2021, including ASBT and Security Bank deposits and locations, would comprise more than 70 locations throughout Kansas and Missouri and over $5 billion in assets.
“We’re pleased to find a community bank like Equity with similar values to ours, and a history of serving as an innovative and sophisticated resource for its customers,” said Jim Lewis, President and CEO of Security Bank. “Customers can rest assured their consumer and business banking services are in capable hands with a commitment to the St. Joseph community.”
Pursuant to the terms of the Branch Purchase and Assumption Agreement between Equity Bank and Security Bank, Equity Bank will acquire certain loans and other branch-related assets, and assume certain deposit and other liabilities associated with the Security Bank branches.
Security Bank was advised by D.A. Davidson & Co. and was represented by Stinson LLP as legal counsel.
About Equity Bancshares, Inc.
Equity Bancshares, Inc. is the parent company of Equity Bank, offering a full range of financial solutions, including commercial loans, consumer banking, mortgage loans, and treasury management services. As of June 30, 2021, Equity had approximately $4.2 billion in consolidated total assets, with 52 full service locations in Kansas, Missouri, Arkansas and Oklahoma, including corporate offices in Wichita. Learn more at www.equitybank.com.
Equity provides an enhanced banking experience for customers through a suite of sophisticated banking products and services tailored to their needs, while delivering the high-quality, relationship-based customer service of a community bank. Equity’s common stock is traded on the NASDAQ Global Select Market under the symbol “EQBK.”
About Security Bank of Kansas City
Security Bank is a full service bank founded in 1933 and based in Kansas City, Kansas. Security Bank had $3.6 billion in consolidated total assets as of March 31, 2021 and 43 bank locations in and around the Kansas City metropolitan area.
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For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Equity’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 9, 2021 and any updates to those risk factors set forth in Equity’s subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Equity’s underlying assumptions prove to be incorrect, actual results may differ materially from what Equity anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Equity does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New risks and uncertainties arise from time to time, and it is not possible for us to predict those events or how they may affect us. In addition, Equity cannot assess the impact of each factor on Equity’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Equity or persons acting on Equity’s behalf may issue.
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Important Additional Information
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities. Investors and security holders are urged to carefully review and consider Equity’s public filings with the SEC, including but not limited to its Annual Report on Form 10-K, its proxy statement, its Current Reports on Form 8-K and its Quarterly Reports on Form 10-Q. The documents filed by Equity with the SEC may be obtained free of charge at Equity’s investor relations website at investor.equitybank.com or at the SEC’s website at www.sec.gov. Alternatively, these documents, when available, can be obtained free of charge from Equity upon written request to Equity Bancshares, Inc., Attn: Investor Relations, 7701 East Kellogg Drive, Suite 300, Wichita, Kansas 67207 or by calling (316) 612-6000.