Stifel Financial Corp. and Business Bancshares Inc. today announced that the companies have entered into a definitive agreement under which Stifel Financial Corp. will acquire Business Bancshares Inc. and its wholly owned subsidiary, The Business Bank of St. Louis.
Terms of the transaction were not disclosed. It is expected to close in the fourth quarter of 2018.
Business Bancshares is a bank holding company and parent of The Business Bank of St. Louis, which was founded in 2002 and operates a full-service banking facility from a location in Clayton, Mo. Business Bancshares has approximately $620 million in total assets, $516 million of loans, $536 million of total deposits, and $70 million of tangible equity as of March 31, 2018, and its non-performing loan ratio was 0.04 percent.
“This acquisition represents another step in the build-out of our banking services in our Global Wealth Management business. We have focused on expanding our bank balance sheet over the past three years by supporting our clients with mortgage and securities-based lending, and as of March 31, 2018, Stifel Bank & Trust has grown to over $15.2 billion in assets. We believe that The Business Bank of St. Louis is complementary to our existing bank franchise, and we intend to operate it as a separate subsidiary bank that will support the business banking needs of our Global Wealth Management clients as well as clients of our Institutional Group,” said Ronald J. Kruszewski, chairman and CEO of Stifel Financial Corp.
“We welcome The Business Bank of St. Louis to the Stifel family. The Business Bank of St. Louis and Stifel Bank & Trust will operate as sister companies to efficiently broaden the products and services available to the clients of Stifel,” said Chris Reichert, CEO of Stifel Bank & Trust. “This will also expand
Stifel’s private banking and deposit product capabilities throughout the St. Louis region,” Reichert added.
“We are excited to join this respected St. Louis-based company. Combining with Stifel will benefit our existing clients as we expand our lending capacity with additional liquidity and capital,” said Larry Kirby, chief executive officer and president of Business Bancshares, Inc. and The Business Bank of St. Louis. “Stifel’s extensive capabilities in wealth management, trust, and investment banking will enhance the products and services that we can offer to our customers.”
The transaction is subject to regulatory approval and customary closing conditions, including the approval of Business Bancshares Inc.’s shareholders. The Board of Directors of Business Bancshares, Inc. has unanimously approved the transaction. In connection with the transaction, all of the senior management and key client relationship managers of The Business Bank of St. Louis have executed retention agreements with Stifel Financial Corp.