Southern Missouri Bancorp acquires Peoples Bank of the Ozarks

Southern Missouri Bancorp, Inc., of Poplar Bluff, announced that its acquisition of Peoples Service Company ("Peoples"), in Nixa, and its subsidiary, Peoples Bank of the Ozarks, was completed Tuesday.

Southern Missouri is the holding company for Southern Bank, headquartered in Poplar Bluff and operating 25 facilities in southern Missouri and northern Arkansas. Peoples Bank of the Ozarks is headquartered in Nixa and operates ten facilities in southwest Missouri.

Greg Steffens, President and Chief Executive Officer of Southern Missouri, said in a written statement, "We are very pleased to bring Peoples Bank of the Ozarks into the Southern Missouri family and we look forward to growing our presence in southwest Missouri. We know Peoples has a great customer base, dedicated employees, and conducts business in outstanding communities."

Todd Hensley, Chairman and Chief Executive Officer of Peoples, added he believes it will benefit the company's associates, customers, and communities.

As a result of the merger, each share of PSC held immediately prior to closing is being exchanged for $11.50, plus .3289 shares of Southern Missouri common stock. In addition, Mr. Hensley has been appointed to the Board of Directors of Southern Missouri effective as of the close of the merger.

Southern Missouri anticipates merging Peoples Bank of the Ozarks with and into Southern Bank late this year. As of June 30, Peoples Service Company reported total consolidated assets of $266 million, loans, net, of $193 million, and deposits of $220 million. On a pro forma basis, the combined entity will hold assets of approximately $1.3 billion, including loans, net, of $1.0 billion, and deposits of $1.0 billion. The transaction is expected to be immediately accretive to earnings per share, excluding transaction expenses, and to be accretive to tangible book value within four years.

Sandler O'Neill + Partners, L.P. acted as financial advisor and Holland & Knight served as legal advisor to Peoples, while Silver, Freedman, Taff & Tiernan LLP served as legal advisor to Southern Missouri.