Simmons First National Corp. announced Wednesday that it has entered into a definitive stock purchase agreement with Citizens National Bancorp Inc. to acquire Citizens National Bank of Athens, Tenn.
According to the terms of the agreement, Simmons will acquire all of the outstanding common stock of CNB in a transaction valued at approximately $77 million based on the company’s May 17 closing price. The purchase price will consist of 835,741 shares of Simmons common stock and $40.3 million in cash.
“We’re pleased to welcome the customers and associates of Citizens National Bank to the Simmons family,” said George Makris Jr., the Simmons chairman and chief executive officer. “As we continue to expand our community banking strategy, it’s important that we find partners who have common goals, experience, culture and reputations as excellent corporate citizens. Throughout the bank’s 108 years, the CNB leadership has built a franchise focused on meeting the financial service needs of its customers in the markets it serves. We value that legacy and plan to continue to provide high levels of quality customer service.”
CNB operates nine financial centers in eastern Tennessee with assets of $552 million, loans of $352 million, deposits of $473 million and trust assets of $217 million.
“CNB is excited about the strategic partnership with Simmons Bank,” said Paul G. Willson, the CNB chairman. “Both institutions have their roots in rural markets and have successfully served the banking needs of their customers for more than 100 years.”
Completion of the acquisition is expected in the fourth quarter of 2016 and is subject to certain closing conditions, including approval by the shareholders of Citizens and customary regulatory approvals. After closing, CNB is expected to continue operating as a separate bank subsidiary of the company for an interim period until it’s merged into Simmons Bank.
Simmons was advised by Keefe, Bruyette & Woods Inc., a Stifel company. Citizens was advised by SunTrust Robinson Humphrey Inc. and Mercer Capital, which rendered a fairness opinion.