Mercantile Bancorp has finalized a debt exchange transaction that eliminates $28m of debt owed to Great River Bancshares and has transferred control of HNB National Bank to Dean Phillips, the sole shareholder of Great River.
The company said that the exchange of debt for all issued and outstanding stock of HNB National Bank leaves approximately $16m in outstanding debt owed to Mr Phillips and Great River. It anticipates the remainder of this debt will be repaid following the closing of a definitive agreement to sell its two smallest banks, Brown County State Bank and Marine Bank & Trust to United Community Bancorp, for approximately $25.6m.
Mercantile Bancorp is a holding company with majority-owned subsidiaries consisting of three banks in Illinois and one each in Kansas and Florida. The bank conducts full-service commercial and consumer banking business, engages in mortgage banking, trust services and asset management, and provides other financial services and products.
