Simmons First National Corp. of Pine Bluff said Wednesday that it will acquire all outstanding capital stock of The Landrum Co. of Columbia, Missouri, the parent company of Landmark Bank.
A Simmons spokesperson said the all-stock deal is worth about $434 million, making it about 1.6 times book value. Landmark Bank has $3.3 billion in total assets, making it the largest individual bank purchased by Simmons.
“Landmark Bank is a strong banking franchise with deep history and much success in the communities it serves, and I am thrilled that the Landmark Bank team has chosen to become our newest partner,” George Makris, Simmons’ chairman and CEO, said in a news release. “By combining our companies, we will substantially enhance our ability to provide quality financial products and services to our customers throughout Missouri, Oklahoma and Texas.”
Landmark Bank has nearly 40 locations throughout the three states, places Simmons already operates. For example, Simmons has 45 offices in Missouri, but mainly in the St. Louis and Springfield areas, and none in Columbia.
The deal is the latest in a string of acquisitions for Simmons in the three states. In April, Simmons completed a $172 million acquisition of Reliance Bancshares Inc. in the St. Louis suburb of Des Peres, Missouri. Last year, it wrapped up deals for banks based in Stillwater, Oklahoma, and Fort Worth, Texas.
In all, Landmark employs about 700 people in 15 offices in Missouri, 12 in Texas and 11 in Oklahoma. It earned $27.9 million in 2018 and $26.6 million in 2017. It reported earnings of $7.37 million in the first quarter of 2019. It has loans of $2.1 billion and deposits of $3 billion.
The deal would push Simmons into the No. 2 position, ranked by assets, among Arkansas-chartered banks. Arvest Bank of Fayetteville had assets of $19.3 billion as of June 30, while Simmons had $17.9 billion. Bank OZK of Little Rock was at $22 billion.
The deal, which still requires approval by Landrum shareholders, is expected to close in the fourth quarter. After that, Landmark Bank would operate as a separate bank subsidiary of Simmons for an interim period until it is merged into Simmons.
Kevin Gibbens, Landrum’s president and CEO, said the company looked forward to joining forces with Simmons.
“Simmons has grown to become an impressive regional bank known for successfully integrating its merger partners into its enterprise, and that gives me great confidence in our combined future,” he said in a news release. “Through this transaction, we will be able to take advantage of Simmons’ size and scale to provide our customers with additional products and services, as well as greater lending capabilities. I am convinced that this strategic transaction represents the best path forward for our customers, associates and shareholders alike.”
Simmons said Gibbens will continue to be Landmark’s CEO while the bank is a Simmons Bank subsidiary following the holding company merger. It expects him “to play a key leadership role for Simmons in the Missouri market” after the subsidiary merges with Simmons Bank.
Stephens Inc. of Little Rock was financial advisor to Simmons; Keefe Bruyette & Woods was financial advisor to Landrum.
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