Two St. Louis locally based banks, Royal Banks of Missouri and Frontenac Bank, are merging.
Royal Banks, which has five full-service branches in the region and two limited service locations, has $415 million in assets. Frontenac has four St. Louis area branches and $285 million in assets.
The bank will operate as Royal Banks of Missouri after the merger finalizes in the second quarter of 2016, pending regulatory approval. Financial terms of the merger announced Friday were not disclosed.
Royal Banks’ Steve Baden will remain as president and oversee the operations of the merged banks, and Frontenac Bank’s chairman and CEO Robert Roberson will oversee financial and administrative functions.
Low loan demand was one driver in the combination. “In today’s world, size matters and it’s important for banks to get larger to have synergies,” Roberson said. “We see an exciting opportunity to make larger loans and help St. Louis get on a robust path for growth.”
“Both banks are very similar and are true commercial banks, while both have a robust retail clientele,” he continued.
The two bank’s geographic footprints do not significantly overlap, and no branches are slated for closure, Baden told the Post-Dispatch. Royal Banks’ branches are in South St. Louis, Glendale, University City, and Creve Coeur, and Frontenac Bank’s are in Kirkwood, Frontenac, Earth City and St. Charles.