Simmons First National Corp. (Nasdaq: SFNC), known for its acquisition-heavy strategy, penned a new definitive agreement to take over Columbia-based The Landrum Co.
The Pine Bluff, Arkansas-based Simmons Bank operator would add $3.3 billion in assets, $3 billion in deposits and 39 branches through the all-stock deal valued at approximately $434 million, according to a news release. Simmons has more than 200 branches in eight states — including six in Springfield — as well as $17.9 billion in assets and $13.5 billion in deposits.
“Simmons has grown to become an impressive regional bank known for successfully integrating its merger partners into its enterprise, and that gives me great confidence in our combined future,” Landrum President and CEO Kevin Gibbens said in the release. “I am convinced that this strategic transaction represents the best path forward for our customers, associates and shareholders alike.”
Through the deal, Landrum shareholders would receive 17.4 million Simmons shares. Each share of Landrum’s common stock would be converted into the right to receive 25.5 of Simmons’ common shares.
The deal is expected to close in the fourth quarter. Landrum would continue operations as a subsidiary of Simmons for an interim period before merging into the Arkansas company, according to the release.
Simmons entered the Springfield market through the 2010 purchase of Southwest Community Bank’s assets following the 14-year-old company’s failure. After that, it purchased local companies Liberty Bancshares Inc. and Ozark Trust and Investment Corp., according to past Springfield Business Journal reporting.
Simmons earlier this month reported second-quarter net income of $55.6 million, a 3.8% increase compared with a year earlier.
SFNC shares were trading at $25.81 as of 9:17 a.m., compared with a 52-week range of $22.08 to $32.45.
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