by Gwen Moritz
Posted 7/3/2013 10:28 am
Updated 6 months ago
First Federal Bancshares of Arkansas Inc. of Harrison on Wednesday released additional details about its acquisition of First National Security Corp., announced on Monday.
The deal, the second major in-state bank deal announced in the last two weeks, will almost triple First Federal Bancshares' assets to about $1.4 billion and expand its branch network to 44 in Arkansas and two in southeast Oklahoma.
First National Security is the parent of First National Bank of Hot Springs and Heritage Bank of Jonesboro. In an 8K filing with the U.S. Securities and Exchange Commission on Wednesdsay, First Federal Bancshares noted:
- First Federal will pay $74 million in cash and 6,252,400 shares of stock (Nasdaq: FFBH), the value of which has increased to nearly $55 million thanks to an increase in the stock price of about 10 percent since the deal was announced on Monday. (That puts the value of the deal at around $129 million, up from the value of $124 million on Monday.)
- Five members of Bear State Financial Holdings LLC, the investment company that recapitalized First Federal in 2011, have committed to buying an additional $4 million worth of stock, for total additional capital of $20 million. Richard N. Massey, chairman of the First Federal board of directors, and Scott T. Ford, the former Alltel Corp. CEO who is a director of First Federal, are the only two Bear State investors specifically named in the SEC filing.
First National Security's chairman, John H. Hendrix, and CEO Daniel C. Horton, will join First Federal's board of directors.
The deal is expected to close in the fourth quarter of 2013.
Last week, Home BancShares Inc. of Conway announced a $280 million deal to acquire Wallace Fowler's Liberty Bank of Arkansas Inc. of Jonesboro, which will create the second-biggest bank headquartered in Arkansas.