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Equity Bank to Merge with American State Bank & Trust in $74.6M Deal

Plus: United Community Banks buys wealth manager; Ottawa Savings Bank to convert charter

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  • Written by  Banking Exchange staff
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Equity Bank to Merge with American State Bank & Trust in $74.6M Deal

Kansas-based Equity Bancshares is to merge with fellow Kansan group American State Bank (ASB).

The deal, scheduled to complete in early October 2021, is valued at approximately $73.6 million, according to a statement from the two companies published this week.

ASB is the parent company for American State Bank & Trust, while Equity Bancshares owns Equity Bank.

The transaction will add American State Bank & Trust’s 17 Kansas locations to Equity Bank’s current network.

The combined company would have approximately $5 billion in total assets once the merger completes, based on data from March 31, 2021.

Brad Elliott, chairman and CEO of Equity, said: “Kansas is home to numerous, thriving communities with customers who desire a community banking approach, and our institutions match up well in terms of mindset and geographic fit.”

Elsewhere, South Carolina-based United Community Banks is to acquire wealth management firm FinTrust Capital Partners.

The acquisition includes FinTrust subsidiaries FinTrust Capital Advisors, FinTrust Capital Benefit Group, and FinTrust Brokerage Services.

As of March 31, 2021, FinTrust had assets under management of $2 billion across its advisory, retirement planning and brokerage businesses.

The transaction is subject to regulatory approval and is expected to complete in the third quarter of this year.

United’s chairman and CEO Lynn Harton said: “The addition of FinTrust, a strong and growing registered investment adviser, continues the expansion of our product offerings and gives us additional opportunities to provide a full range of financial services to our customers.”

Meanwhile, Illinois’ Ottawa Bancorp, the holding company for Ottawa Savings Bank, has applied to convert its charter from a federally chartered savings bank to an Illinois-chartered commercial bank.

President and CEO Craig Hepner explained that the change “positions the bank to compete in the markets we serve and to further execute our business strategy”.

“The conversion will position us to increase our commercial loan portfolio, and we believe that the well-qualified lending team that we have assembled over the last several years is well-positioned to help us execute this strategy,” he added.

The charter conversion is expected to be completed in the third quarter of 2021, whereupon the Illinois Department of Financial and Professional Regulation and the Federal Deposit Insurance Corporation will become the Bank’s primary regulators.

The bank also announced a rebrand from Ottawa Savings Bank to OSB Community Bank, which Hepner said would reflect the “broadening communities we serve”.

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