Simmons First acquires failed Sedalia bank
by October 19, 2012 9:24 pm 161 views
Simmons First National Corp. announced today, (Oct. 19) it has expanded its presence within the state of Missouri by acquiring approximately $201 million in assets of Excel Bank of Sedalia from the Federal Deposit Insurance Corporation. Excel Bank was closed today by the Missouri Division of Finance, which appointed the FDIC as receiver.
Simmons has entered into an agreement with the FDIC to purchase $201 million in assets and assume all of the deposits and substantially all other liabilities, at a discount of $21 million and no deposit premium. The final value and purchase price of acquired assets and liabilities will be determined upon completion of appropriate valuation processes.
"Needless to say, our team has been very busy over the last several months with the announced FDIC assisted acquisitions in Missouri," J. Thomas May, chairman and CEO of Simmons, said in a statement. "In 2010, we announced our interest in expanding our Arkansas footprint into Missouri and Kansas. At the time, we discussed accomplishing this expansion through FDIC assisted and traditional acquisitions. While these acquisitions have been through FDIC assisted acquisitions, and we expect more will follow, we continue to have an interest in pursuing traditional acquisitions in these markets. This acquisition is the fourth of several that we anticipate making over the next several years, which is the reason we raised $71 million in additional capital in November 2009."
Simmons First's FDIC assisted acquisitions include:
May 2010 — Simmons announced the purchase of Southwest Community Bank in Springfield, Mo., with assets of $100 million which was the bank's first expansion beyond the borders of Arkansas
October 2010 — Simmons announced a second acquisition with the purchase of Security Savings Bank in Olathe, Kan., with $480 million in assets and four locations in the Kansas City metro, three in Salina, Kan., and two in Wichita, Kan.
September 14, 2012 — Simmons acquired $279 million assets of Truman Bank with four locations in the St. Louis metro
October 19, 2012 — The acquisition of Excel Bank is Simmons' fourth FDIC assisted transaction. The acquisition of $201 million in assets of Excel Bank of Sedalia, Mo., includes locations in Sedalia, Green Ridge, Lee's Summit (Kansas City MSA) and Kirkwood (St. Louis MSA)
"These most recent purchases are strategic relative to our commitment to expand our footprint within the Missouri and Kansas regions," stated May.
As part of the purchase and assumption agreement, the FDIC and Simmons agreed to a loss share plan covering approximately $127 million in loans and other real estate. The FDIC will reimburse Simmons for 80% of the losses it incurs on the disposition of loans and foreclosed real estate on all covered assets.