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In Arkansas, Southern Bancorp to buy Farmers Bank

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In Arkansas, Southern Bancorp to buy Farmers Bank

In Arkansas, Little Rock-based Southern Bancorp Inc. will acquire Farmers Bank of Hamburg for approximately $4.5 million in cash and stock, according to a press release by Southern Bancorp.

The split of the consideration was not disclosed. SNL calculates the deal value as 99.6% of book and tangible book, 11.97% of deposits and 10.66% of assets. The deal carries a tangible book discount to core deposits of 0.06%.

For comparison, SNL valuations for bank and thrift targets in the Southeast region between Jan. 25, 2016, and Jan. 25, 2017, averaged 134.3% of book and 141.6% of tangible book, on an aggregate basis.

With the deal, Southern Bancorp would enter Ashley County, Ark., with one branch to be ranked fourth with a 13.25% share of approximately $282.0 million in total market deposits.

Farmers Bank had an asset size of $42.2 million as of Dec. 31, 2016. Southern Bancorp's subsidiary, Southern Bancorp Bank, had $1.19 billion in assets as of Sept. 30, 2016. Southern Bancorp's most recent acquisition was of Mississippi-based Bolivar Banking Corp., in 2014.

Southern Bancorp's Eudora market president, Bruce Timmons, will lead the new Hamburg area. A Jan. 25 press release said Farmers Bank President Kenny Allbritton will be retained in a leadership capacity.

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To use SNL's branch analytics tools to compare market overlap, click here. To use SNL Maps to create custom maps, click here. SNL is an offering of S&P Global Market Intelligence.