Alamogordo Financial Corp. (ALMG) in Alamogordo, N.M., has agreed to pay more money to purchase Bank 1440 (BFFO) in Phoenix.
Alamogordo, the holding company of BANK'34, will pay roughly $8 million in cash and stock for Bank 1440, the companies said in a joint Wednesday press release. The deal was originally valued at $7.3 million when it was first announced in June.
The decision to increase the amount of cash Alamogordo pays to Bank 1440 shareholders "reflects the continued commitment of the boards of both banks in representing the best interests of their respective shareholders," the companies said in the release.
Under the new merger terms, Bank 1440 shareholders would be entitled to receive $940 in cash and 170 shares of Alamogordo common stock for each 1,000 shares of Bank 1440 stock owned at the close of the deal.
Alamogordo and Bank 1440 also agreed to extend the date by which either company can pull out of the agreement to Sept. 10. The deal is expected to close in the second half of this year.
Alamogordo has $167 million of assets and two branches, according to data from the Federal Deposit Insurance Corp. Bank 1440 has $82.5 million of assets and two branches.