Mergers and Acquisitions
Transaction Details
DD&F CONSULTING GROUP 
Deal Overview
Buyer:  Arvest Bank Group, Inc. (Click for buyer financial information)
Target:  P & W Bancshares, Inc. (Click for target financial information)
Deal Type:  Bank & Thrift Company
Announcement Date 9/1/99   Announced Deal Value ($M) 15.8
Status Completed   Announced Deal Value Per Share ($) NA
Completion Date 1/6/00      
 
Deal Summary
Arvest Bank Group, the Walton family's bank holding company, looks to develop its niche in the central Arkansas area with the addition of Little Rock-based P & W Bancshares. P & W Bancshares, holding company for Central Mortgage and Central Bank & Trust, holds 1.43% of the Pulaski County market, which Arvest will gain after the deal completes. This will be the first deal for Arvest this year after a 1998 that included two ventures into the southwest market with the purchase of two OK banks and one deal in the midwest. Pricing ratios reflect P&W's 6/99 small bhc equity of $8.094M and LTM NI of $702,000.

Deal Pricing Ratios
  Announcement Completion
Price / Book (%) 194.80 194.80
Price / Tangible Book (%) 194.80 194.80
Price / LTM EPS (x) 22.51 22.51
Price / Deposits (%) 19.29 19.01
Price / Assets (%) 16.23 15.40
Tang Book Premium / Core Deposits (%) 12.77 11.88


Deal Terms

Description of Consideration
Arvest paid $15,767,040 in cash all shares of P&W and the 20% interest in Central Mortage Company that P&W did not own. Seller's financials are for Central Bank & Trust.
Accounting Method NA   Lockup Agreement No
In-State Transaction? Yes   Strike Price ($) NA
Merger of Equals? No   % of Shares Outstanding NA
Geographic Expansion? Market Expansion   Shares Under Option NA
Goodwill Generated ($000) NA   Core Deposit Intangibles ($000) NA
Estimated Cost Savings (%) NA   Est. Restructuring Charges ($000) NA
Termination Fee ($000) 0  
         
Consideration Breakout
Cash ($M)   15.8
Common Stock ($M)   0
Common Shares Issued   0
Preferred Stock ($M)   0
Preferred Shares Issued   0
Debt ($M)   0
Other ($M)   0

Deal Advisers

Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer Yes DD&F Consulting Group
 
Seller No NA
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Hilburn Calhoon Harper Prunisk
 
Seller Yes Mitchell Williams Selig Gates

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