Community Bancorp, Inc. and Community National Bank & Trust Reach Definitive Agreement to Purchase Quarry City Savings and Loan Association

CHANUTE, Kan. and WARRENSBURG, Mo., March 22, 2022 /PRNewswire/ -- Community Bancorp, Inc. ("Community Bancorp"), the bank holding company of Community National Bank & Trust ("Community National" and collectively with Community Bancorp, "Community"), a national bank with its principal office in Chanute, Kansas, have reached a definitive agreement with Quarry City Savings and Loan Association ("Quarry City") (OTC Pink: "QRRY"), a Missouri savings association headquartered in Warrensburg, Missouri, to acquire Quarry City.  

The all-cash aggregate merger consideration for the transaction, after accounting for all of the estimated transaction costs on a tax-effected basis, is estimated to be $10.37 million, subject to further adjustment as provided in the definitive agreement. Quarry City currently estimates that, without any further adjustments, this will result in approximately $25.42 per share cash consideration to the current holders of Quarry City common stock. However, the estimated per share consideration may be subject to significant adjustment based on a variety of factors, including, but not limited to, transaction costs. As a result, Quarry City shareholders should not assume they will receive $25.42 per share upon closing of the transaction.  

Quarry City operates a full-service banking office in Warrensburg, Missouri. As of December 31, 2021, Quarry City reported $71.3 million in total assets and total equity capital of $9.6 million. The proposed transaction will merge Quarry City with and into Community National with Community National surviving the merger and Quarry City will cease to exist.

Daniel Mildfelt, President and Chief Executive Officer of Community Bancorp and Community National, said, "We are pleased with the opportunity to welcome Quarry City and its employees and customers to Community National. Both institutions share the principles of caring for their employees, the communities they serve and providing high quality products and services to their customers. As two community-minded banks, we are proud to strengthen our local impact and support new markets."  

Steve Andrew, President and Chief Executive Officer of Quarry City, said, "We are excited to partner with Community National, a leading community bank. The merger will provide an opportunity for our customers to join a much larger, yet community bank-oriented, banking network, with expanded products and services, while employees will benefit from the opportunity to work for a growing community bank. Our customers should rest assured that they will continue to see the same friendly faces they always have except that now we will be able to offer additional cutting-edge products and services. This is good news for our community as Community National will continue to maintain our Warrensburg office and the Bank will have significantly more financial strength."

The transaction is subject to customary closing conditions, including the receipt of approvals from the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency and the shareholders of Quarry City. We currently anticipate that the transaction will close in the third quarter of 2022.

Quarry City is being advised by The Capital Corporation as financial advisor and Luse Gorman, PC as legal counsel. Community National is being advised by Minter & Pollak, LC.

About Community Bancorp and Community National                                                   

Community National Bank & Trust is a community bank, headquartered in Chanute, Kansas with 39 locations in Kansas, Missouri and Oklahoma.  Community National Bank & Trust offers a wide array of unique checking account products, internet and mobile banking, savings, diversified lending in residential, agricultural, commercial, and consumer lending, leasing, commercial cash management and trust services. 

About Quarry City Savings and Loan Association

Quarry City is a Missouri-chartered savings association which offers financial services to individuals, families and businesses through its full-service office located in Warrensburg, Missouri, which is the County Seat of Johnson County, located in west central Missouri. Quarry City has operated continuously in Warrensburg, Missouri since its founding in 1890.

Important Cautionary Notes Regarding Forward-Looking Statements

This press release includes forward-looking statements that relate to the business and expected future events or future performance of Quarry City and Community and involve known and unknown risks, uncertainties and other factors that may cause its actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Words such as, but not limited to, "believe," "expect," "anticipate," "estimate," "intend," "plan," "targets," "likely," "will," "would," "could," and similar expressions or phrases identify forward-looking statements. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations include, but are not limited to: fluctuation in market rates of interest and loan and deposit pricing, adverse changes in the national or regional economy as well as adverse economic conditions in the local market areas, including as a result of the coronavirus pandemic, the ability to complete the transaction and recognize the expected benefits and synergies, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel. Although management believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate.  Therefore, management of Quarry City or Community can give no assurance that the results contemplated in the forward-looking statements will be realized.  The inclusion of this forward-looking information should not be construed as a representation by Quarry City or Community or any person that the future events, plans or expectations contemplated will be achieved.  All subsequent written and oral forward-looking statements attributable to Quarry City or Community or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above.  The forward-looking statements are made as of the date of this press release.  Neither Quarry City nor Community undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.

SOURCE Quarry City