Central Bancompany, Inc., has entered into a definitive merger agreement pursuant to which it will acquire Liberty Bancorp, Inc., the holding company for BankLiberty. Under the terms of the merger agreement, BankLiberty will also be merged into Central Bancompany’s affiliate bank, Central Bank of the Midwest, headquartered in Lee’s Summit, Missouri, subject to the receipt of all required state and federal regulatory approvals, the approval of Liberty’s shareholders and the satisfaction of customary closing conditions.
“We are excited to join Central Bank of the Midwest and continue our longstanding commitment to the community, with greater resources and financial services for our existing customers and employees, as part of the Central Bank family in the Northland.”
Under the terms of the definitive agreement, Liberty common shareholders will receive $42.00 in cash for each share of Liberty common stock they own. Liberty option holders will also receive cash equal to the difference between $42.00 per share and the exercise price of their in-the-money options. The aggregate deal value is $103.7 million.
Brent Giles, Chairman and CEO of Liberty, stated, "We are excited to join Central Bank of the Midwest and continue our longstanding commitment to the community, with greater resources and financial services for our existing customers and employees, as part of the Central Bank family in the Northland."
Bill Ferguson, President and CEO of Central Bank of the Midwest, said, “This opportunity allows us to expand our footprint north of the river in Kansas City, an area we have wanted to be in for some time. We are excited to join BankLiberty in making this partnership a reality in the Northland. Their commitment to financial strength and local decision-making is a perfect fit for our Central Bank family.”
At the closing of the transaction, it is anticipated that Central Bank of the Midwest will have combined assets totaling $2.3 billion, with $1.7 billion in loans and $1.9 billion in deposits. The addition of 13 branches in the Northland and Independence areas will bring the total number of Central Bank of the Midwest branches to 46, reaching 25 communities across Greater Kansas City and Lawrence.
Upon completion of the acquisition, customers of Central Bank of the Midwest will have access to more than 150 branches and a nationwide network of ATMs under the dogwood logo and through the MoneyPass network.
The transaction is expected to be completed in the third quarter of 2019. Completion of the transaction is subject to approval by regulatory authorities and Liberty’s shareholders, as well as certain other closing conditions. In connection with the definitive agreement, Central entered into voting agreements with the members of the Board of Directors of Liberty. Subject to the terms and conditions of the voting agreements, these parties have agreed to vote their shares in favor of the transactions contemplated by the definitive agreement.
Raymond James & Associates, Inc. served as financial advisor on the transaction to Liberty and Kilpatrick Townsend & Stockton LLP served as legal advisor.
About Central Bancompany
Central Bancompany is a more than $13 billion, Missouri-based bank holding company with 13 full-service community banks and more than 250 locations in 67 communities serving consumers and businesses in Missouri, Kansas, Illinois, Oklahoma, and Colorado.
About Liberty Bancorp, Inc.
Liberty Bancorp, Inc. is the holding company for BankLiberty, which is a full- service community bank offering deposit and loan services for businesses, families and individuals. With assets of $540.0 million as of December 31, 2018, BankLiberty has recently been named one of the strongest midsize banks in Kansas City by the Kansas City Business Journal, and has a five-star rating from Bauer Financial.