Pine Bluff-based Simmons First National Corp. announced Friday (Sept. 14) it has expanded into the St. Louis, Missouri market by acquiring approximately $282 million in assets of Truman Bank of St. Louis.
The bank was closed Friday by the Missouri Division of Finance, which appointed the Federal Deposit Insurance Corp. (FDIC) as receiver.
Of the $282 million in assets acquired, Simmons First 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.
As part of the purchase and assumption agreement, the FDIC and Simmons First have entered into a loss share agreement covering approximately $118 million in loans and other real estate. The FDIC will reimburse Simmons First for 80% of the losses it incurs on the disposition of loans and foreclosed real estate on all covered assets.
The final valuation and purchase price of acquired assets and liabilities will be determined upon completion of appropriate valuation processes, the bank said.
“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,” May added.
He also said the expansion into the St. Louis market complemented recent expansions into Springfield and Kansas City.
With the acquisition, Simmons First will have 88 financial centers in 51 communities in three states.