Simmons First acquires failed St. Louis bank

Simmons First National Corporation announced Friday (Sept. 14)  through its wholly-owned bank subsidiary expanded into the St. Louis, Mo. market by acquiring approximately $282 million in assets of Truman Bank of St. Louis from the Federal Deposit Insurance Corporation. Truman Bank was closed by the Missouri Division of Finance, which appointed the FDIC as receiver.

Of the $282 million in assets acquired, SFNB has entered into a purchase and assumption agreement with the FDIC to purchase $219 million in assets and assume substantially all of the deposits and other liabilities, at a discount of $20.9 million and no deposit premium. The remaining $63 million in assets acquired were through a loan sale agreement with the FDIC, at a 12% discount. The final valuation and purchase price of acquired assets and liabilities will be determined upon completion of appropriate valuation processes.

"This acquisition is the third of several that we anticipate making over the next several years, which is the reason we raised $70.5 million in additional capital in November 2009," said J. Thomas May, Chairman and CEO. "In May 2010 we announced the purchase of Southwest Community Bank in Springfield, Missouri which was a good first step for expanding beyond the borders of Arkansas. In October of the same year we announced the acquisition of Security Savings Bank in Olathe, Kansas with four locations in the Kansas City Metropolitan area, three in Salina, Kansas and two in Wichita, Kansas. Obviously, our expansion into the St. Louis market complements our existing presence in Springfield and Kansas City. Simmons First has built its franchise around a community banking philosophy and this acquisition is a natural extension of that strategy. With this acquisition, Simmons First will be serving its customers from 88 financial centers in 51 communities in three states, including our newly acquired St. Louis locations."

As part of the purchase and assumption agreement, the FDIC and SFNB have entered into a loss share agreement covering approximately $118 million in loans and other real estate. The FDIC will reimburse SFNB for 80% of the losses it incurs on the disposition of loans and foreclosed real estate on all covered assets.