Last Friday, Simmons First National Corporation announced that their wholly owned bank subsidiary, Simmons First National Bank, entered into a purchase and assumption agreement with loss share arrangements with the Federal Deposit Insurance Corporation (FDIC). The agreement is 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. Upon completion of the acquisition, Simmons First will continue to remain extremely “well capitalized” by regulatory standards. They will require no additional capital to support this transaction.
J. Thomas May, Chairman and CEO, said, “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. 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.”
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. The FDIC will continue to insure deposits. Checks drawn on Southwest Community Bank will continue to undergo processing. Loan customers should continue to make their customary payments.
Currently, the expectation is that this acquisition will provide Simmons First expansion into southwest Missouri. It will also provide them investment securities of approximately $6 million, deposits of approximately $101 million ($54 million being brokered deposits, which will undergo replacement with excess liquidity at Simmons First), and loss share protection from the FDIC on approximately $64 million in covered assets.
With corporate headquarters in Pine Bluff, Arkansas, Simmons First National Corporation is a $3.2 billion financial holding company. They have eight community banks in Pine Bluff, Lake Village, Jonesboro, Rogers, Searcy, Russellville, El Dorado and Hot Springs, Arkansas. Their eight banks conduct financial operations from 89 offices, of which 85 are financial centers, in 48 communities, including the newly acquired Springfield, Missouri location.
For additional information visit www.simmonsfirst.com
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