Posted 8/17/2012 07:35 am
Updated 9 months ago
Home BancShares Inc. of Conway intends to buy selected assets of Premier Bank of Tallahassee for $1.4 million cash, according to filings released Wednesday.
The proposed deal, announced Tuesday, encompasses six of the lender's branches but does not include its operations center.
Securities filings indicate Premier's parent company will file for Chapter 11 reorganization, and a bankruptcy judge will have to approve the deal.
In its Tuesday announcement, Home Bancshares alluded to Premier's bankruptcy proceeds but did not provide details. It also did not disclose the $1.4 million cash bid.
There is the possibility that other bidders for Premier could emerge. If Home BancShares lost out in the bidding, it might be entitled to a $550,000 fee under terms of the asset purchase agreement.
Home BancShares is a publicly traded banking company (Nasdaq: HOMB) and the parent company of Centennial Bank. It expects the Premier deal to close during the fourth quarter.
Premier Bank recorded total assets of $282 million and a loss of $579,000, as of June 30. The bank reported a $10.3 million loss during 2011, with year-end total assets of $296 million.
Premier, established in 1995, has a staff of 70 with six full-service locations in Tallahassee and one in Quincy, Fla.
Home BancShares has purchased six other banks in Florida with the help of the Federal Deposit Insurance Corporation.