Simmons First National Corp. has acquired Excel Bank of Sedalia, Mo., one of several expected acquisitions in the future, J. Thomas May, Simmons Chairman and CEO said Friday.
“This acquisition is the fourth of several that we anticipate making over the next several years, which is the reason we raised $71 million in additional capital in November 2009,” May said in a news release.
Simmons made its first bank purchase outside of Arkansas in May 2010 when it bought Southwest Community Bank in Springfield, Mo.
Excel Bank was closed Friday by the Missouri Division of Finance, which appointed the Federal Deposit Insurance Corporation as receiver.
Through Simmons’ wholly-owned bank subsidiary, Simmons First National Bank, the Pine Bluff-based financial agency has expanded its presence within Missouri by acquiring approximately $201 million in assets of Excel Bank from the FDIC.
“Needless to say, our team has been very busy over the last several months with the announced FDIC assisted acquisitions in Missouri,” May said. “In 2010, we announced our interest in expanding our Arkansas footprint into Missouri and Kansas. At the time, we discussed accomplishing this expansion through FDIC assisted and traditional acquisitions. While these acquisitions have been through FDIC assisted acquisitions, and we expect more will follow, we continue to have an interest in pursuing traditional acquisitions in these markets.”
Simmons’ FDIC assisted acquisitions include:
• May 2010 – Simmons announced the purchase of Southwest Community Bank in Springfield, Mo., with assets of $100 million.
• October 2010 – Simmons announced a second acquisition with the purchase of Security Savings Bank in Olathe, Kan., with $480 million in assets and four locations in the Kansas City MSA, three in Salina, Kansas and two in Wichita, Kan.
• Sept. 14, 2012 – Simmons acquired $279 million assets of Truman Bank with four locations in the St. Louis area.
• Oct. 19, 2012 – The acquisition of Excel Bank represents Simmons’ fourth FDIC assisted transaction. The acquisition of $201 million in assets of Excel Bank of Sedalia, Mo., includes locations in Sedalia, Green Ridge, Lee’s Summit (Kansas City area) and Kirkwood (St. Louis area.)
“These most recent purchases are strategic relative to our commitment to expand our footprint within the Missouri and Kansas regions,” May said.
As part of the purchase and assumption agreement, the FDIC and Simmons have entered into a loss share agreement covering approximately $127 million in loans and other real estate. The FDIC will reimburse Simmons for 80 percent of the losses it incurs on the disposition of loans and foreclosed real estate on all covered assets.