Mercantile Bancorp Announces Agreement for Sale of Two Missouri Branches of Mercantile Bank
October 19 2011 - 4:05PM
Marketwired
Mercantile Bancorp, Inc. (NYSE Amex: MBR) (the "Company") today
announced that its subsidiary, Mercantile Bank, has entered into a
definitive agreement to sell two Mercantile Bank branches located
in Savannah and St. Joseph, Missouri, excluding the trust and
brokerage divisions which are retained by Mercantile Bank, to HNB
National Bank headquartered in Hannibal, Missouri, contingent upon
customary closing conditions, including bank regulatory approvals.
Pursuant to the terms of the agreement, Mercantile Bank will sell
approximately $63 million in loans to HNB National Bank and HNB
National Bank will assume up to $74 million in deposits booked at
the Mercantile Bank branches for a deposit premium of 1.5%.
The sale of these two northwest Missouri branches is a
significant step in the Company's ongoing efforts to improve its
capital position. Lee R. Keith, President & CEO of Mercantile
Bancorp, stated, "This sale represents an opportunity for us to
proactively and positively impact our capital levels while also
allowing us to concentrate our focus on Mercantile Bank's business
model in its primary and largest market area in Quincy,
Illinois."
"Mercantile Bank, founded in 1906, remains one of Quincy's
largest financial institutions, and the Company is committed to
supporting the Bank's efforts to continue to serve its consumer,
commercial, and agricultural customers in the greater-Quincy area,"
states Keith.
Once the sale receives the necessary regulatory approvals and is
completed, customers in Savannah and St. Joseph, Missouri should be
able to seamlessly transition their banking relationships to HNB
National Bank. Keith emphasizes, "We appreciate the loyalty and
patronage of our northwest Missouri employees and customers over
the years, and we have complete confidence in HNB National Bank to
provide them with the same kind of dedicated community bank service
going forward."
About Mercantile Bancorp Mercantile
Bancorp, Inc. is a Quincy, Illinois-based bank holding company with
wholly-owned subsidiaries consisting of one bank each in Illinois,
Kansas, and Florida, where the Company conducts full-service
commercial and consumer banking business, engages in mortgage
banking, trust services and asset management, and provides other
financial services and products. Further information is available
on the company's website at mercbanx.com.
Forward-Looking Statements This press
release may contain "forward-looking statements" which reflect the
Company's current views with respect to future events and financial
performance. The Private Securities Litigation Reform Act of 1995
("the Act") provides a safe harbor for forward-looking statements
that are identified as such and are accompanied by the
identification of important factors that could cause actual results
to differ materially from the forward-looking statements. For these
statements, the Company, together with its subsidiaries, claims the
protection afforded by the safe harbor in the Act. Forward-looking
statements are not based on historical information, but rather are
related to future operations, strategies, financial results or
other developments. Forward-looking statements are based on
management's expectations as well as certain assumptions and
estimates made by, and information available to, management at the
time the statements are made. Those statements are based on general
assumptions and are subject to various risks, uncertainties and
other factors that may cause actual results to differ materially
from the views, beliefs and projections expressed in such
statements. These risks, uncertainties and other factors that may
cause actual results to differ from expectations, are set forth in
our Annual Report on Form 10-K for the year ended December 31,
2010, and our Quarterly Reports on Form 10-Q for the quarters ended
March 31 and June 30, 2011 as on file with the Securities and
Exchange Commission, and include, among other factors, the
following: general business and economic conditions on both a
regional and national level; fluctuations in real estate values;
the level and volatility of the capital markets, interest rates,
and other market indices; changes in consumer and investor
confidence in, and the related impact on, financial markets and
institutions; estimates of fair value of certain Company assets and
liabilities; federal and state legislative and regulatory actions;
various monetary and fiscal policies and governmental regulations;
and changes in accounting standards, rules and interpretations and
their impact on the Company's financial statements. The words
"believe," "expect," "anticipate," "project," and similar
expressions often signify forward-looking statements. You should
not place undue reliance on any forward-looking statements. Any
forward-looking statements in this release speak only as of the
date of the release, and we do not assume any obligation to update
the forward-looking statements or to update the reasons why actual
results could differ from those contained in the forward-looking
statements.
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