Southern Bank Completes Merger with FortuneBank

Southern Missouri Bancorp, the parent company of Southern Bank, completed its merger with Fortune Financial, the parent company of FortuneBank, which was merged with and into Southern Bank.

Following the completion of the merger, Southern Missouri Bancorp now operates 52 banking facilities in Missouri, Illinois and Arkansas.

“We want to welcome the FortuneBank team members and customers to the Southern Bank family,” Greg Steffens, president and CEO of Southern Missouri Bancorp, said. “We are looking forward to being a part of these growing markets in the St. Louis MSA and want to become a dependable partner for our customers there by placing an emphasis on impeccable customer service and innovative technology. We’re excited to help people do big things in and around St. Louis.”

In conjunction with the merger, Daniel Jones, founder, chairman and CEO of Fortune Financial, joined the boards of directors of Southern Missouri Bancorp and Southern Bank.

“Our partnership with Southern Missouri, as I have believed from our very first meeting, will be a tremendous benefit to our customers, employees and shareholders. We look forward to continuing to serve our community as we have for the past 16 years with the additional products and services brought to us through this partnership,” Jones said. “I am grateful to our customers, employees and shareholders for these past 16 years. I now look forward to continuing to serve them in my role as market chairman for Southern Missouri.”

As a result of the merger, each share of Fortune Financial common stock held immediately prior to completion of the merger is being exchanged for 0.3025 shares of Southern Missouri Bancorp common stock, or $13.31 in cash (as adjusted based on Fortune Financial’s capital and total number of shares outstanding immediately prior to closing), at the election of each shareholder, subject to the proration and allocation procedures set forth in the merger agreement. Southern Missouri Bancorp paid approximately $31.7 million in merger consideration, comprised of stock and cash at a 60:40 ratio.

At Dec. 31, 2021, Fortune Financial reported total consolidated assets of $261.2 million, including net loans of $199.4 million and deposits of $219.6 million. On a pro forma basis, the combined entity will hold assets of approximately $3.2 billion, including net loans of $2.6 billion and deposits of $2.8 billion.

Armstrong Teasdale served as legal advisor to Fortune Financial, while Silver, Freedman, Taff & Tiernan served as legal advisor to Southern Missouri Bancorp on this transaction. Piper Sandler served as financial advisor to Fortune Financial.

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