Selling 8 Branches, Small Ark. Bank To Focus on Home, SBA, Farm Loans
An Arkansas community bank is selling more than half of its branches and will use the proceeds to expand its mortgage lending subsidiary and boost Small Business Administration and Farm Service Agency lending.First Financial Banc Corp. in El Dorado is planning to sell eight branches to Simmons First National Corp. in Pine Bluff, Ark., for an undisclosed sum.
First Financial has $277 million of assets; Simmons has $1.7 billion.
The sale, which is to close in the third quarter, would leave First Financial with just six branches. "We're taking that capital and redeploying it where we think we are a good niche player," said Steve Cameron, its chief executive officer.
Simmons operates eight community banks in 30 Arkansas communities. The First Financial branches would come with $68 million of loans and $70 million of deposits.
"These locations allow us to fill in some geographical voids in our efforts to establish a network of community banks and to increase our presence where we are already located," Simmons chairman and chief executive officer J. Thomas May said.
- Alan Kline
Maine Bank Deal Sends Mid-Coast To Union Bankshares for $11.9M
Union Bankshares of Ellsworth, Maine, said it would buy Mid-Coast Bancorp of Waldoboro for $11.9 million in cash.Union, with $265 million of assets, would pay $15.875 per Mid-Coast share, a 165% premium over its Monday close of $6.
Mid-Coast's stock soared on news of the deal Tuesday, closing at $14.75. It was trading at $14.9375 at midday Wednesday.
Mid-Coast owns Waldoboro Bank, which has four branches and $82 million of assets. Union plans to merge Waldoboro into its own Union Trust Co.
The deal is expected to close in the third quarter.
