Shares of St. Louis-based Allegiant Bancorp
Last month, Brian Hook took a brief look at Allegiant -- what he considered a growing Midwestern bank with a nice dividend. Allegiant is the largest publicly held bank based in St. Louis, and the acquisition marks National City's entrance into that market. Likely a good sign is news that Allegiant CEO Shaun Hayes will stay on board -- this recalls Berkshire Hathaway
Allegiant itself has much to recommend: growth, a growing dividend, and a key position in a regional market. Banking mergers aren't always well received, but they usually are when it comes to smaller institutions -- particularly as these deals tend to be funded with cash and carry rich premiums.
There's a lot to like about regional banks. Fool Mathew Emmert examined their appeal in a Septemberseries discussing Burke & Herbert (OTC: BHRB), Bank of Granite
Today, at least, Allegiant investors have little to do but cheer.
Dave Marino-Nachison can be reached at email@example.com.