In a bid to expand its operational roots, Missouri-based
Commerce Bancshares, Inc
) entered into a definitive agreement with Summit Bancshares,
Inc., of Tulsa and Oklahoma City to acquire the latter. The
all-stock deal, valued at $40.6 million, comprises solely of
shares of Commerce Bancshares.
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As per the agreement, Summit Bank will become a wholly owned
subsidiary of Commerce Bancshares post acquisition. Further, this
purchase is expected to enhance Commerce Bancshares' total
deposits by $231 million, total loans by $213 million and total
assets by $261 million.
At present, Commerce Bancshares provides loans worth an annual
average of $384 million in Okla. After the completion of the
merger, the company is expected to provide loans worth of about
$600 million to its clients in Okla.
The transaction, which is expected to be completed in the third
quarter of 2013, has been approved by the board of directors of
both companies. However, the deal is subject to customary closing
conditions that include regulatory approvals. The acquisition
also requires the consent of the shareholders of Summit Bank.
In 2007, Commerce Bancshares announced the completion of its
merger with Commerce Bank. The deal was valued at $29.5 million.
In 2006, the company entered into an agreement with South Tulsa
Financial Corporation. The deal was valued at about $26.2 million
in Commerce Bancshares stock.
Earlier, in the same year, Commerce Bancshares entered into an
agreement with West Pointe Bancorp, Inc. to acquire the latter.
The deal was valued at $80.9 million, comprising both cash and
The latest acquisition by Commerce Bancshares is a strategic fit
for the company as it will aid in expanding its operations. The
deal is expected to auger well for the bank's revenue generation
capability. It is expected to strengthen the company's market
share and footprint.
Commerce Bancshares currently carries a Zacks Rank #3 (Hold). In
the same sector, better performing stocks include
Enterprise Financial Services Corp
First Interstate Bancsystem Inc
Old Second Bancorp Inc
). All these carry a Zacks Rank #1 (Strong Buy).