First State Bancshares Inc. in Farmington, Mo., is entering two counties with a deal to buy Progress Bancshares Inc. in Sullivan.
The price was not disclosed.
Progress' $191 million-asset Progress Bank of Missouri has five branches, including two in Warren County and one in Glasconade County, according to Federal Deposit Insurance Corp. data.
Both counties would be new markets for First State. Its $700 million-asset First State Community Bank has 22 branches in southeast and central Missouri.
Progress Bank of Missouri would operate as a separate unit of First State Bancshares, and all the executives would remain in place, said Lee Keith, Progress Bancshares' president.
Bill Cooper, the chairman of First State Bancshares and its bank, said in a press release, "We are eager to begin servicing our new markets and contributing to the future development of the area."
The deal is expected to close next quarter.
Federal and state regulators issued a cease-and-desist order against Progress in June, because of deficient credit risk management and lending procedures, among other issues. Mr. Keith said that the order is still in effect, but that his company expects it to be lifted soon.
