Mergers and Acquisitions
Transaction Details
DD&F CONSULTING GROUP 
Deal Overview
Buyer:  Pocahontas Bancorp Inc. (Click for buyer financial information)
Target:  Walden/Smith Financial Group, Inc. (Click for target financial information)
Deal Type:  Bank & Thrift Company
Announcement Date 1/4/01   Announced Deal Value ($M) 28.0
Status Completed   Announced Deal Value Per Share ($) NA
Completion Date 5/15/01      
 
Deal Summary
Pocahontas Bancorp Inc., a unitary thrift holding company, has agreed to acquire local rival Walden/Smith Financial Group Inc. and its commercial bank subsidiary, First Community Bank. Walden/Smith unit Bank of Tuckerman was merged into First Community during the third quarter of 2000. Although Pocahontas "will operate more like a community bank," Pocahontas CEO James Edington said, "we're going to hold onto the thrift charter for right now." Announcement deal ratios are based on June 2000 holding company equity of $15,424,000 and tangible equity of $15,179,000.

Deal Pricing Ratios
  Announcement Completion
Price / Book (%) 181.54 174.30
Price / Tangible Book (%) 184.47 176.91
Price / LTM EPS (x) 16.62 34.08
Price / Deposits (%) 22.07 19.25
Price / Assets (%) 18.55 16.85
Tang Book Premium / Core Deposits (%) 12.77 11.63


Deal Terms

Description of Consideration
Walden/Smith shareholders received approximately $27.4 million in cash for all outstanding shares. Seller's financials at announcement are the merged financials of First Community Bank and Bank of Tuckerman.
Accounting Method NA   Lockup Agreement No
In-State Transaction? Yes   Strike Price ($) NA
Merger of Equals? No   % of Shares Outstanding NA
Geographic Expansion? Partial Overlap   Shares Under Option NA
Goodwill Generated ($000) 10,440   Core Deposit Intangibles ($000) NA
Estimated Cost Savings (%) NA   Est. Restructuring Charges ($000) NA
Termination Fee ($000) 0  
         
Consideration Breakout
Cash ($M)   27.4
Common Stock ($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 RP Financial LC
 
Seller Yes DD&F Consulting Group
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Luse Gorman PC
 
Seller Yes McAfee & Taft

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