Note 25 - Business Combination

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Business Combination Disclosure [Text Block]

NOTE 25: BUSINESS COMBINATION

On November 9, 2021, the Company announced that it entered into a definitive agreement whereby QCR Holdings will acquire the Company and merge Guaranty Bank into Springfield First Community Bank, QCR Holdings’ Springfield-based charter. The combined bank will operate under the Guaranty Bank name in all Springfield and southwest Missouri markets. Under the terms of the merger agreement, which has been unanimously approved by the boards of directors of both companies, stockholders of the Company will have the right to receive for each share of the Company common stock owned, at the election of each stockholder, and subject to proration, (i) $30.50 in cash, (ii) 0.58775 shares of QCR Holdings common stock, or (iii) mixed consideration of $6.10 in cash and 0.4702 shares of QCR Holdings common stock, with total consideration to consist of approximately 80% stock and 20% cash. Based upon the $59.99 closing price of QCR Holdings common stock as of November 5, 2021, the transaction is valued at approximately $152 million. The transaction is subject to regulatory approvals, approval by the Company’s stockholders and certain customary closing conditions. The transaction is expected to close in the second quarter of 2022.