Simmons First Announces Expansion Into Southwest Missouri
15 Maggio 2010 - 12:23AM
Simmons First National Corporation (Nasdaq:SFNC) announced today
that its wholly-owned bank subsidiary, Simmons First National Bank,
has entered into a purchase and assumption agreement with loss
share arrangements with the Federal Deposit Insurance Corporation
(the "FDIC") to purchase substantially all of the assets and to
assume substantially all of the deposits and other liabilities of
Southwest Community Bank in Springfield, Missouri. Simmons First,
as a result of this agreement, expands its footprint outside the
Arkansas borders for the first time.
The former Southwest Community Bank location will open at its
normal banking hours on May 15, 2010, as a Simmons First National
Bank financial center and all former Southwest Community Bank
customers will be able to conduct banking business as usual.
Depositors of Southwest Community Bank will automatically become
depositors of Simmons First, and deposits will continue to be
insured by the FDIC. Depositors may access their accounts as usual
through automated teller machine transactions, checks, online
banking and debit card transactions. Checks drawn on Southwest
Community Bank will continue to be processed, and loan customers
should continue to make their customary payments. Customers may
continue banking as usual and feel confident that their deposits
are secure, now backed by one of the country's strongest and safest
financial institutions.
"This acquisition is the first of several that we anticipate
making over the next two to three years, which is the reason we
raised $70.5 million in additional capital in November, 2009," said
J. Thomas May, Chairman and CEO. "It represents a good first step
in expanding beyond the borders of Arkansas. In addition to
our statewide footprint, the Springfield market compliments the
footprint expansion Simmons First consummated along highway 65 into
North Central Arkansas in 2004, and our presence in Northwest and
Northeast Arkansas. We believe the Missouri market, in
general, and the Springfield market, in particular, present good
opportunities for our franchise."
During the transition period, Southwest Community Bank customer
accounts will be transitioned to Simmons First National Bank
accounts with customers ultimately enjoying the benefits of Simmons
First's extensive selection of products and services. Simmons
First Trust Company was named the Largest Trust Company in Arkansas
with assets in excess of $2 billion. Simmons First has been
nationally proclaimed as having one of the best credit cards in
America by Money Magazine, the Wall Street Journal
and Kiplinger and was recently recognized as having the best
low rate credit card by cardrating.com. We are also a major
provider of cash management services.
"We welcome our new customers and associates in southwest
Missouri to the Simmons First family," said May. "Our 107 year old
franchise has been built around a community banking
philosophy. Our associates are committed to treating the
customer the way we want to be treated when we are the
customer. This is the same commitment that we will deliver to
the former customers of Southwest Community Bank."
Through the loss share provisions of the purchase and assumption
agreement, the FDIC will reimburse Simmons First for 80% of the
losses it incurs on the disposition of loans and foreclosed real
estate. The assets were purchased from the FDIC at a discount of
9.5% of total assets and a deposit premium of 0.5% of all
non-brokered deposits. The valuation and purchase price of acquired
assets and liabilities will be finally determined upon completion
of appropriate valuation processes.
Highlights of the Transaction
The acquisition is currently expected to provide Simmons
First:
-
Expansion into southwest Missouri
-
Assets of approximately $98 million
-
Loans of approximately $56 million (before loan discounts and
FDIC receivables)
-
Investment securities of approximately $6 million
-
Deposits of approximately $101 million, with $54 million being
brokered deposits which will be replaced with excess liquidity at
Simmons First
-
Loss share protection from the FDIC on approximately $64 million
in covered assets
The impact on Simmons First is currently expected to:
-
Be slightly accretive to both net income and diluted earnings
per share
-
Be slightly accretive to book value per share and tangible book
value per share
-
Leverage and deploy a portion of Simmons First's recent
underwritten public common equity offering in which the Company
sold common stock for net proceeds of approximately
$70.5 million
Upon completion of the acquisition, Simmons First will continue
to remain extremely "well capitalized" by regulatory standards,
with no additional capital required to support this transaction.
Simmons First has a long history of consistent earnings, strong
capital and excellent asset quality.
Simmons First National Corporation is a $3.2 billion Arkansas
based financial holding company with eight community banks in Pine
Bluff, Lake Village, Jonesboro, Rogers, Searcy, Russellville, El
Dorado and Hot Springs, Arkansas. The Company's eight banks conduct
financial operations from 89 offices, of which 85 are
financial centers, in 48 communities, including its newly acquired
Springfield, Missouri location. The Company's common stock trades
on the NASDAQ Global Select Market under the symbol "SFNC".
The Simmons First National Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=4819
Forward Looking Statements
Statements in this press release that are not historical facts
should be considered forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements of this type speak only as of the date
of this news release. By nature, forward-looking statements involve
inherent risk and uncertainties. Various factors, including, but
not limited to, economic conditions, credit quality, interest
rates, loan demand and changes in the assumptions used in making
the forward-looking statements, could cause actual results to
differ materially from those contemplated by the forward-looking
statements. Forward-looking statements regarding the Southwest
Community Bank transaction are based on currently available
information provided to us by the FDIC. Actual results could differ
materially after experience with this acquisition. Additional
information on factors that might affect Simmons First National
Corporation's financial results is included in its Form 10-K filing
with the Securities and Exchange Commission.
CONTACT: Simmons First National Corporation
David W. Garner, Senior Vice President and Investor
Relations Officer
(870) 541-1000
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