Enterprise Financial Services (EFSC) has agreed to acquire Jefferson County Bancshares (JCB) in a deal worth about $130.6m.
As per the agreed terms of the merger deal, shareholders of JCB can choose to receive $85.39 in cash per share or 2.75 shares of EFSC stock for each JCB share. The combined entity will manage about $5bn in assets.
One JCB director will join EFSC’s board of directors as part of the deal.
Moreover, JCB chairman and CEO Michael Walsh will serve as executive vice president and chairman of the St. Louis region at Enterprise Bank & Trust (EB&T), the wholly-owned subsidiary of JCB. Walsh will also join the board of directors at EB&T.
EFSC CEO Peter Benoist said: "This is clearly a winning combination. Mike and his Eagle Bank and Trust team have built an enviable franchise that will very nicely complement our organization. Eagle's solid real estate loan portfolio will add further diversity to our C&I oriented loan book.
“Moreover, the bank's sizable consumer deposit base will supplement our more business related core deposits, accelerating our capacity to efficiently fund future growth. Bringing Eagle into the Enterprise family will propel us into a nearly $5 billion banking company, with robust earning power, ample scale and a materially stronger position in the St. Louis market."
JCB has 13 full service retail and commercial banking offices in metropolitan St. Louis and Perry County, Missouri. The company, along with EB&T, oversaw about $935m in assets, $670m in loans, and $763m in deposits as of 30 June 2016.
The deal has already secured the nod of the board of directors of both companies. It is anticipated to be completed in early 2017, subject to regulatory and JCB shareholders’ approvals.