Southern Bank announces merger with Capaha Bank

Southern Missouri Bancorp Inc., parent corporation of Southern Bank, and Tammcorp Inc., parent corporation of Capaha Bank, announced the signing of a merger agreement which Southern Missouri will acquire Tammcorp in a stock and cash transaction.

As part of the transaction, Capaha will be merged with and into Southern Bank.

Capaha Bank operates six branches, three of which are in Cape Girardeau County, along with three branches in Alexander and Union counties in Southern Illinois.

On Sept. 30, Tammcorp’s consolidated assets were $194 million, including net loans of $157 million, while deposits totaled $165 million.

Southern Missouri Bancorp reported total assets on Sept. 30 of about $1.5 billion, including net loans of $1.2 billion and total deposits of $1.2 billion.

After the acquisition, the combined company’s total assets will be about $1.7 billion, with total net loans of $1.4 billion and total deposits of $1.3 billion.

The combined company will operate 42 locations in Missouri, Arkansas and Illinois.

“Southern Bank could not be more pleased to announce this merger with Capaha,” Greg Steffens, president and CEO of Southern Bank, said. “Like us, the Capaha organization knows that banking is a people business, and they put service to their community first. We believe that by partnering with Southern Bank, the loyal and dedicated bankers at Capaha will be able to serve their communities even more effectively.”

John Abercrombie, chairman, president and CEO of Capaha Bank, is expected to join the boards of directors of Southern Missouri and Southern Bank.

“Southern Bank will make a great addition to the communities Capaha Bank calls home,” Abercrombie said. “I’ve been privileged to lead this institution for 44 years, and there is nothing more important to me than to ensure that Tamms, Cairo, Cape Girardeau, Jackson and Anna are supported by a strong community bank that delivers customer service in a friendly, professional manner, and that makes fast, local decisions.

“I am confident that as we move forward as part of the Southern Bank family, we’ll continue to accomplish that goal.”

“We believe this merger is a significant strategic move for southern Missouri,” Steffens said. “The Cape Girardeau and Jackson market represent a substantial growth opportunity not far from our headquarters in Southeast Missouri and a logical progression for our existing banking network. We look forward to the opportunity and we are excited to add the Capaha staff to our team.”

Southern Missouri and Tammcorp anticipate completion of the transaction late in the second quarter of 2017.