Simmons First Announces Expansion Into Kansas
16 Ottobre 2010 - 12:15AM
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
Security Savings Bank, FSB in Olathe, Kansas. Simmons First, as a
result of this agreement, expands its footprint outside the
Arkansas borders for the second time. Security Savings Bank was
closed today by the Office of Thrift Supervision, which appointed
the FDIC as receiver.
The former Security Savings Bank locations will
open at their normal banking hours on October 16, 2010, as Simmons
First National Bank financial centers and all former Security
Savings Bank customers will be able to conduct banking business as
usual. Depositors of Security Savings Bank will automatically
become depositors of Simmons First National Bank, 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
Security Savings 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 second 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. "Earlier in the year
we announced the purchase of Southwest Community Bank in
Springfield, Missouri which was a good first step for expanding
beyond the borders of Arkansas. The acquisition of Security Savings
Bank in Olathe, Kansas is a natural extension of our footprint.
Security Savings has nine locations with four in the Kansas City
Metropolitan area, three in Salina, Kansas, and two in Wichita,
Kansas. Simmons First has built its franchise around a community
banking philosophy, thus this acquisition is a natural extension of
that strategy. In addition, we believe the Kansas market represents
a good opportunity to expand our current niche of agriculture
lending. With this acquisition, Simmons First will be serving its
customers from 85 financial centers in 46 communities in three
states, including Springfield, Missouri; Salina, Kansas; Wichita,
Kansas; Overland Park, Kansas; Leawood, Kansas and Olathe,
Kansas."
During the transition period, Security Savings Bank
customer accounts will be converted 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
Kansas 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 Security Savings
Bank."
Through the loss share provisions of the purchase and assumption
agreement, the FDIC will reimburse Simmons First National
Bank for 80% of the losses it incurs on the disposition of
loans and foreclosed real estate on all covered assets. The assets
were purchased from the FDIC at a discount of $46.5 million, or
approximately 10.9% of total assets. All deposits were
acquired with no deposit premium. The final valuation and purchase
price of acquired assets and liabilities will be determined upon
completion of appropriate valuation processes.
Highlights of the Transaction
The acquisition is currently expected to provide
Simmons First:
- Expansion into Kansas
- Assets of approximately $428 million
- Loans of approximately $310 million (before loan discounts and
FDIC receivables)
- Investment securities of approximately $82 million
- Deposits of approximately $360 million, with $40 million being
brokered deposits which will be paid out, thereby utilizing a
portion of the excess liquidity of Simmons First
- Loss share protection from the FDIC on approximately $330
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 substantially above the threshold for "well
capitalized" under regulatory standards. No additional capital is
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 $3.5
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 46
communities, including its newly acquired Kansas locations. 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 Security Savings Bank, FSB 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
Grafico Azioni Simmons First National (NASDAQ:SFNC)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Simmons First National (NASDAQ:SFNC)
Storico
Da Lug 2023 a Lug 2024