Colorado-based financial services holding company First Western Financial’s subsidiary First Western Trust Bank has signed a branch purchase and assumption agreement with Simmons Bank.
Under the terms of the deal, First Western Trust Bank will acquire all of Simmons’ Colorado locations.
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The locations include three Simmons branches and one loan production office located in Denver.
Simmons’ deposits, loans and other assets are also inclusive in the deal.
As of 31 December last year, the combined deposit of the branches to be acquired was valued at about $58m, while loan balances stood at about $105m.
First Western intends to consolidate three out of four acquired branches into its existing branches and expects about $0.8m in pre-tax charges.
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By GlobalDataFirst Western CEO Scott Wylie said: “This branch purchase and assumption agreement is a very attractive way for First Western to deepen our presence in our core Denver market in a manner that will be immediately accretive to earnings.
“With the additional scale we will have following this transaction, we expect to improve our operating leverage and further enhance efficiencies in the company.
“We are excited to complete this acquisition, which we believe will be a strong complement to our organic growth and provide another catalyst for improving our level of profitability in the coming years.”
Subject to receipt of regulatory approvals, the transaction is expected to complete in the third quarter of this year.
Simmons bank is a subsidiary of financial holding company Simmons First National.
Stephens acted as financial advisor to Simmons, while Hovde Group and Shapiro Bieging Barber Otteson served as financial advisor and legal counsel, respectively to First Western.
Simmons First National acquisitions:
Last year in August, Simmons First National purchased Landmark Bank in a $434m deal.
In January 2017, Simmons First National acquired First Texas BHC in a $462m deal.
In December 2016, Simmons First National acquired Southwest Bancorp in a $564.4m deal.
In the same year in May, Simmons First National buys Citizens National Bank for about $77m in a cash and stock deal.
