First Federal Bancshares of Harrison (FFBH) acquired First National Security Co., the parent company for First National Bank in Hot Springs and Heritage Bank in Jonesboro.
Under the terms of the merger agreement, First Federal will acquire 100% of the stock of First National and shareholders of First National will receive shares of FFBH common stock and $74 million in cash.
Certain principal shareholders of Bear State Financial Holdings, LLC, FFBH’s controlling shareholder, have separately agreed to invest in the equity of FFBH in order to fund a portion of the cash merger consideration.
The combined enterprise would have approximately $1.4 billion in total assets, 44 branches in communities throughout Arkansas, 2 branches in Southeast Oklahoma, 47 ATM’s and approximately 430 employees.
Three members of First National’s Board of Directors will join FFBH’s Board of Directors, including John H. Hendrix, First National’s Chairman and Daniel C. Horton, First National’s President and CEO.
The merger is expected to close during the fourth quarter of 2013.