Simmons Bank to enter 3 new states with acquisition

In its third announced deal of the year, Simmons First National Corp. (Nasdaq: SFNC) entered a definitive agreement to buy Stillwater, Oklahoma-based Southwest Bancorp Inc. (Nasdaq: OKSB). The move will put Simmons Bank into three new states.

The Pine Bluff, Arkansas-based company that last year bought Springfield businesses Liberty Bancshares Inc. and Ozark Trust and Investment Corp. agreed to purchase the Oklahoma banking system in a deal valued at $564.4 million. Southwest Bancorp’s bank subsidiary is called Bank SNB, according to a news release.

“This transaction provides Simmons with an incredible opportunity to enter new markets in new states – Oklahoma, Colorado and Texas – and grow our operations in Kansas,” Simmons Bank Chairman and CEO George Makris Jr. said in the release.

With the purchase expected to close in third-quarter 2017, Simmons Bank will absorb Bank SNB’s $2.5 billion in assets, $2 billion in deposits, $1.9 billion in loans and 31 branches. As of Sept. 30, Simmons Bank held assets of $8.2 billion and deposits of $6.6 billion.

Upon completion of the purchase, Bank SNB President and CEO Mark Funke will lead Simmons Bank’s new southwest division responsible for banking operations in Oklahoma, Texas, Colorado and Kansas, according to the release.

SFNC shares were trading at $61.60 as of 8:52 a.m., compared with a 52-week range of $38.30 to $76. OKSB shares jumped to a new 52-week high of $28.80 on the acquisition news. Its 52-week low is $14.

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