SFC Bank’s Parent Company, QCR Holdings, Inc., To Acquire Guaranty Bank and merge into SFC Bank
Moline, IL, Springfield, MO, Joplin, MO, Nov. 9, 2021 – QCR Holdings, Inc. (NASDAQ: QCRH) (“QCR Holdings”) and Guaranty Federal Bancshares, Inc. (NASDAQ: GFED) (“Guaranty”) jointly announced today the signing of a definitive agreement whereby QCR Holdings will acquire Guaranty and merge Guaranty Bank, the banking subsidiary of Guaranty into Springfield First Community Bank (“SFC Bank”), QCR Holdings’ Springfield-based charter. The combined bank will operate under the Guaranty Bank name in all Springfield and Southwest Missouri markets.
“Springfield and neighboring southern Missouri markets make up a vibrant region where strong relationships matter. Guaranty Bank closely aligns with our culture and our dedication to client service,” said Larry Helling, QCR Holdings Chief Executive Officer. “There’s nothing more important to our mission than providing exceptional service and supporting the communities in which we do business. The merger will build on those principles.”
Established in 1913, Guaranty Bank currently has 16 banking locations in Springfield, Joplin, Carthage, Ozark, Nixa and Neosho, Missouri, which will expand and complement QCR Holdings’ presence in and commitment to the region. Guaranty reported approximately $1.2 billion in assets and $1.0 billion in deposits as of September 30, 2021.
As of September 30, 2021, the combined bank would have approximately $2.0B in total assets, $1.5B in total loans and $1.6 billion in total deposits. In addition, the combined bank would rank #4 in deposit market share in the Springfield market as of June 30, 2021.
As of September 30, 2021, the combined bank would have approximately $2.0 billion in total assets, $1.5 billion in total loans and $1.6 billion in total deposits. In addition, the combined bank would rank #4 in deposit market share in the Springfield market as of June 30, 2021. Consolidated pro forma total assets as of September 30, 2021 would be $7.2 billion, while consolidated pro forma loans and deposits would be $5.4 billion and $5.9 billion, respectively.
Upon completion of the merger, SFC Bank President and CEO Monte McNew will serve as CEO of the new combined bank, while Guaranty Bank President and CEO Shaun Burke will serve as President.
“We are delighted to be joining forces with Guaranty Bank to serve our clients and our communities,” McNew said. “This partnership positions us to become the preeminent bank in this market. We look forward to demonstrating the value of this merger to all of our stakeholders.”
“Guaranty Bank has been proud to serve our communities for more than a century,” Burke said. “Joining the QCRH family and the team at SFC Bank is an exciting opportunity for us to expand our product and service offerings while continuing our track record of delivering exceptional client service.”
- Increased Market Share
- Combined market share at #4 with $1.4 billion in deposits, based on data as of June 30, 2021, and the opportunity for continued growth. Retaining local charter autonomy will create the second largest locally-managed bank in the community.
- Accelerated Growth Opportunities
- Expansion of QCR Holdings’ niche products and services to new clients provides an exceptional opportunity in the attractive Springfield market. The merger will create important scale and capabilities of a much larger organization.
- Attractive Economics
- Strong QCR Holdings’ EPS accretion of approximately 13% expected in the first full year, 2.75 year tangible book value per share earnback period and accretive to an already strong ROAA.
About QCR Holdings, Inc.
QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield communities through its wholly-owned subsidiary banks. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, began operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by QCR Holdings in 2016, and Springfield First Community Bank, based in Springfield, Missouri, was acquired by QCR Holdings in 2018. Additionally, QCR Holdings serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. Quad City Bank & Trust Company offers equipment loans and leases to businesses through its wholly-owned subsidiary, m2 Equipment Finance, LLC, based in Milwaukee, Wisconsin, and also provides correspondent banking services. QCR Holdings has 24 locations in Iowa, Missouri, Wisconsin and Illinois. As of September 30, 2021, QCR Holdings had approximately $6.0 billion in assets, $4.6 billion in loans and $4.9 billion in deposits. For additional information, please visit QCR Holdings’ website at www.qcrh.com.
About SFC Bank
About SFC Bank SFC Bank is a local full-service community bank that strives to have a positive impact through volunteerism, philanthropy, and a responsible approach to financial services. SFC is dedicated to meeting the financial needs of the surrounding community and exceeding the expectations of customers. SFC Bank is a part of the QCR Holdings family of banks, which operates 23 locations in Illinois, Iowa, Wisconsin, and Missouri. As of September 30, 2021, the SFC has approximately $880.1 million in assets, $718.9 million in loans and $605.9 million in deposits. To learn more about SFC Bank, visit SFCBank.com.
About Guaranty Bank
About Guaranty Bank Guaranty Federal Bancshares, Inc. (NASDAQ:GFED) has a subsidiary corporation offering full banking services. The principal subsidiary, Guaranty Bank, is headquartered in Springfield, Missouri, and has 16 full-service branches in Greene, Christian, Jasper and Newton Counties and a Loan Production Office in Webster County. Guaranty Bank is a member of the MoneyPass ATM network which provide its customers surcharge free access to over 37,000 ATMs nationwide. For more information visit the Guaranty Bank website www.gbankmo.com.