Alamogordo Financial Corp. (ALMG) in New Mexico has agreed to buy Bank 1440 (BFFO) in Phoenix.
Alamogordo will pay $7.6 million for the $79 million-asset bank, the parties announced Wednesday. Alamogordo will pay $3.41 for each share of Bank 1440, a 210% premium to the Tuesday closing price of $1.10. Bank 1440s shareholders can choose to receive cash, stock or a combination.
Adding Bank 1440's two Phoenix-area branches will double the Alamogordo, N.M., company's branch network. Its subsidiary, the $180 million-asset Bank'34, has two branches in southern New Mexico.
"In an era of big banks, we are committed to the preservation of a true community banking model across the entire Bank'34 franchise, Jill Gutierrez, chief executive of Bank'34, said in a news release. "Bank 1440's dedicated employees will endure as the faces, heart and soul of the Bank'34 franchise in Arizona."
Keefe, Bruyette & Woods was Alamogordo's financial advisor, and Luse Gorman Pomerenk & Schick was its legal counsel on the agreement. FIG Partners was Bank 1440's financial advisor and Fenimore, Kay, Harrison & Ford its legal counsel. The deal requires regulatory approval.