Quebec-based banking firm acquires Missouri bank for $144 million


Moline-based QCR Holdings announced on Friday that it has acquired Guaranty Federal Bancshares, Inc. (“Guaranty”). Guaranty’s banking subsidiary, Guaranty Bank, will be merged with QCR Holdings’ Springfield-based charter, Springfield First Community (SFC) Bank, with the banking merger effective April 2, 2022.

The newly merged bank will retain the Guaranty Bank name and operate under CEO Monte McNew and Chairman Shaun Burke, according to a Friday statement.

QCR Holdings’ Springfield First Community Bank in Missouri will merge with Guaranty Bank.

“We are very pleased to welcome Guaranty Bank to the QCR Holdings team as we expand our presence in the dynamic Southwest Missouri markets, where strong customer relationships are important,” said Larry Helling, CEO of QCR Holdings. “This combination brings together two organizations that share core values ​​and business strategies, and we look forward to further growing our market share in the region.”

“We are excited to start a new chapter in Southwestern Missouri and look forward to serving our customers and our communities as one bank and one team,” McNew said. “We have a tremendous opportunity to grow our business with new and existing customers in these markets while delivering the exceptional service they expect.”

Following the bank merger, the Guaranty Bank franchise will have 17 banking locations in Springfield, Joplin, Carthage, Ozark, Marshfield, Nixa and Neosho, Missouri.

Terms of the transaction

Under the terms of the merger agreement, former Guaranty shareholders will be entitled to receive for each share of Guaranty common stock held, at the election of each stockholder – $30.50 in cash, 0.58775 common stock of QCR Holdings, or a mixed consideration of $6.10 cash and 0.4702 common shares of QCR Holdings, the total consideration to consist of approximately 80% stock and 20% cash.

Based on the $56.59 closing price of QCR Holdings common stock on March 31, 2022, the transaction is valued at approximately $144.1 million.

About the company

QCR Holdings, Inc., headquartered in Moline, is a relationship-oriented, multi-bank holding company serving the communities of Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield through its banking subsidiaries wholly owned.

The banks offer comprehensive business and consumer banking services, as well as trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, began operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, began operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the company in 2016, and Springfield, Mo.-based Springfield First Community Bank was acquired in 2018.

Additionally, QCR serves the community of Waterloo/Cedar Falls, Iowa 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.

Including the recent acquisition of Guaranty Bank, the company has 40 locations in Iowa, Missouri, Wisconsin and Illinois. As of December 31, 2021, the combined company had approximately $7.3 billion in assets, $5.4 billion in loans and $5.9 billion in deposits.

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Michael C. Sumner