Commerce Bancshares, Inc.
) announced the completion of its acquisition of Summit
Bancshares, Inc. of Tulsa and Oklahoma City. The deal was
announced in May 2013.
The deal was valued at nearly $44 million in Commerce Bancshares'
stock. Summit Bancshares, with $206 million in loans and $230
million in deposits, merged with Commerce Bancshares on Sep 1.
Now, the combined entity has roughly $454 million in loans and
$363 million in total deposits, with more than 1,300 business
banking relationships in Oklahoma.
Commerce Bancshares has about 360 locations in Missouri,
Illinois, Kansas, Colorado and Oklahoma. Currently, the company
provides loans worth an annual average of $384 million in
Oklahoma. With the completion of the transaction with Summit
Bancshares, the company will be able to offer loans worth
approximately $600 million to its clients in Oklahoma.
This is the first major acquisition by Commerce Bancshares since
the financial crisis. Earlier in 2007, the company had acquired
Commerce Bank for $29.5 million. In 2006, Commerce
Bancshares acquired 2 firms, namely South Tulsa Financial
Corporation for about $26.2 million in stock and West Pointe
Bancorp, Inc. for $80.9 million in a stock-cum-cash deal.
The acquisition of Summit Bancshares will aid Commerce Bancshares
in expanding its operations. The company plans to convey the
changes related to the transition to Summit Bancshares' customers
in the upcoming weeks.
We expect the deal to auger well for Commerce Bancshares' revenue
growth. Moreover, the deal will strengthen the company's market
share and footprint.
Currently, Commerce Bancshares carries a Zacks Rank #3 (Hold). In
the same sector, better performing stocks include
First Interstate Bancsystem Inc.
Mercantile Bank Corp.
). All these carry a Zacks Rank #1 (Strong Buy).
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