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.