Arkansas-based Simmons First National has agreed to acquire Oklahoma-based Southwest Bancorp in a transaction valued at about $564.4m.
Southwest Bancorp is the parent of Bank SNB, through which it offers commercial and consumer lending, deposit and investment services, specialised cash management, and other financial services from offices in Oklahoma, Texas, Kansas, and Colorado.
As per the agreed terms of the merger deal, each share of Southwest Bancorp stock would be exchanged for 0.3903 shares of Simmons stock and $5.11 in cash.
The deal is expected to close in the third quarter of 2017, subject to shareholders’ and regulatory approvals.
Following deal completion, Bank SNB will continue to operate as a separate bank subsidiary of Simmons for an interim period till it is merged into Simmons Bank.
Simmons First National chairman and CEO George Makris, Jr. said: “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.
“The leadership of Bank SNB, quarterbacked by Mark Funke, has been dedicated to building a brand known for excellence in customer service. They’ve been highly successful, and we look forward to their continued involvement in the combined organization. Mark will be the President of the new Southwest Division of Simmons Bank and will be responsible for the banking operations in Oklahoma, Texas, Colorado, and Kansas.”