(CBSH) Commerce Bancshares to Buy Summit Bank

In a bid to expand its operational roots, Missouri-based Commerce Bancshares, Inc. (CBSH) 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.

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.

Previous Acquisitions

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 stock.

Our Viewpoint

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. (EFSC), First Interstate Bancsystem Inc. (FIBK) and Old Second Bancorp Inc. (OSBC). All these carry a Zacks Rank #1 (Strong Buy).
COMMERCE BANCSH (CBSH): Free Stock Analysis Report

ENTERPRISE FINL (EFSC): Free Stock Analysis Report

FIRST INTST MT (FIBK): Free Stock Analysis Report

OLD SECOND BCP (OSBC): Free Stock Analysis Report

To read this article on Zacks.com click here.

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.


Powered by Facebook Comments

Similar Posts: | | | | | | Financial | Regional - Southwest Banks

RSS feeds: CBSH | Commerce Bancshares Inc. | EFSC | Enterprise Financial Services Corporation | Old Second Bancorp Inc | OSBC | Financial | Regional - Southwest Banks |

Other Posts by | RSS Feed for this author