OakStar Bancshares is increasing its assets by $225 million through the deal.
SBJ file photo
OakStar Bancshares is increasing its assets by $225 million through the deal.

OakStar to acquire KC banking company

Posted online

OakStar Bancshares Inc. penned an acquisition deal for Kansas City, Kansas-based First Bancshares Inc.

The Springfield-based OakStar Bank operator is targeting a first quarter 2021 closing on the purchase for undisclosed terms, according to a news release.

First Bancshares, which does business as Community First Bank, has $225 million in assets. The OakStar-led combined company would have more than $1.5 billion in assets; 19-full service branches; a mortgage office in Kansas City; loan production offices in Columbia and Nixa; and around 330 employees.

“OakStar Bank was clearly our first choice as the best fit and best match for our customers and community when we were reviewing opportunities for today and in the future," said Dave Spehar, president of Community First Bank, in the release. "Their commitment to our associates and our customers played a significant role in the selection process of OakStar."

OakStar Bank and Community First Bank are slated to continue with their existing, separate bank charters, management and boards of directors after the completion of the deal. Both companies would be wholly owned subsidiaries of OakStar Bancshares.

OakStar Bank ranked No. 5 on Springfield Business Journal's 2020 list of the area's largest banks and savings banks, based on Springfield metropolitan statistical area deposits reported to the Federal Deposit Insurance Corp. as of June 30. The company had roughly $673 million in local deposits at the time. For the list published in the Nov. 23 issue, OakStar also reported nearly $3 million in local net operating income and $757.5 million in local net loans.