QCR Holdings (QCRH), Guaranty Merger Gets Regulatory Nod
QCR Holdings, Inc. QCRH has received all the necessary regulatory approvals for its previously announced acquisition of Guaranty Federal Bancshares, Inc. GFED. The stock-and-cash merger, which was announced in November 2021, is anticipated to be completed on Apr 1, 2022, subject to the satisfaction of other customary closing conditions.
Earlier this week, the shareholders of Guaranty Federal provided their consent to the deal. Per the terms of the transaction, QCRH plans to merge Guaranty Bank, the banking subsidiary of Guaranty Federal into Springfield First Community Bank, its Springfield-based charter. Following the merger, the combined company will operate under the name of Guaranty Bank in all markets across Springfield and southwest Missouri.
“This combination will enhance our market position in Southwest Missouri, and we are excited to continue delivering exceptional service to our new and existing clients in the region.” said Larry Helling, QCR Holdings’ chief executive officer.
At the time of the acquisition announcement, QCR Holdings had stated that the transaction is expected to increase its deposit market share with $1.4 billion in deposits, based on data as of Jun 30, 2021. Growth opportunities through the expansion of niche products and services to new clients in the Springfield market are also attractive.
Earnings per share accretion of approximately 13% is expected in the first full year of combined operations for QCR Holdings. The company also expects to incur a tangible book value per share dilution of approximately 5% upon the merger, with an earn-back period of approximately 2.75 years.
QCR Holdings is growing organically backed by its robust loan growth and a solid economy. Its strong loan pipeline suggests accelerated growth in the near term. Also, efforts to improve market share and footprint through strategic buyouts bode well for the long term.
Over the past year, shares of QCR Holdings have gained 18.7%. GFED has rallied 58.1%.
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Currently, QCRH carries a Zacks Rank #3 (Hold) while GEFD carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Inorganic Moves by Other Banks
First Horizon Corporation FHN and TD Bank Group TD signed a definitive agreement, wherein the latter will acquire First Horizon in an all-cash deal valued at $13.4 billion or $25 for each FHN common share.
TD Bank Group anticipates to close the FHN acquisition by Nov 1, 2022. The buyout is subject to customary closing conditions, including approvals from First Horizon's shareholders, and the United States and Canada regulatory authorities.
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