Bank of Missouri seeks purchase of Security Bank and Trust
Thursday, June 21, 2012
Increasing costs associated with new banking regulations have prompted Security Bank and Trust, headquartered in Scott City, to agree to a merger with The Bank of Missouri.
Reliable Community Bancshares Inc., parent company of The Bank of Missouri, headquartered in Perryville, has entered into an agreement for the merger and acquisition of The First Southeast Missouri Bancorporation Inc., the holding company for Security Bank and Trust.
Security Bank and Trust, an independent bank with $80 million in assets, has two locations in Scott City, as well as branches in Cape Girardeau, Marble Hill and Patton.
The proposed merger is subject to the approval of the shareholders of The First Southeast Missouri Bancorporation Inc. and regulatory authorities.
The Bank of Missouri anticipates the merger will occur in the fourth quarter of this year, according to a news release.
"We had talked to other people. We were looking for a good fit and this came along. It's a good bank and a reasonable price," said Larry Uelsmann, president of Security Bank and Trust.
He said the merger allows the bank to deal with problems it anticipated it would have implementing new financial regulations expected to take effect in the coming years.
"The smaller the bank you are, the more difficult it is to cover the cost of the legislation," Uelsmann said.
The Bank of Missouri, which has $900 million in assets, operates 16 locations across Missouri, with nine in Southeast Missouri. This merger will give the company five more locations.
"We are excited that the customers and employees of Security Bank will be joining The Bank of Missouri family," David Crader, CEO of The Bank of Missouri, said in a news release. "This acquisition creates a stronger presence and enhanced convenience, along with a broader array of banking products and services."
All five branches will remain open with no staffing changes planned, Crader said.
The Bank of Missouri went through a similar process in 2008 when it acquired Countryside Bank in Republic, Mo., and Springfield, Mo.
Bank mergers must be approved by the FDIC, the Federal Reserve and the Missouri Division of Finance.
Current Security Bank and Trust customers shouldn't expect to encounter many changes, Crader said.
"Any changes that might be necessary will be communicated with them. We will make every effort to assure a smooth transition," he said.
1514 Main St., Scott City, MO