Simmons First National in Pine Bluff, Ark., has agreed to buy Citizens National Bancorp in Athens, Tenn.

The $7.5 billion-asset Simmons said in a press release Wednesday that it will pay $77 million in cash and stock for the $552 million-asset Citizens. The deal, which is expected to close in the fourth quarter, values Citizens at 121% of its tangible book value.

Citizens has nine branches, $352 million in loans and $473 million in deposits. The company also has about $200 million in trust assets under management.

Simmons said the deal should be at least 2% accretive to its 2017 earnings per share. It will also take less than three years for Simmons to earn back the 1.4% dilution to its tangible book value.

Simmons said it expects to cut $4 million in annual costs. The company also expects to incur $4.6 million in one-time merger-related expenses.

Simmons was advised by Keefe, Bruyette & Woods. Citizens was advised by SunTrust Robinson Humphrey; Mercer Capital provided a fairness opinion.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.