Mergers and Acquisitions
Transaction Details
DD&F CONSULTING GROUP 
Deal Overview
Buyer:  Pocahontas Bancorp Inc. (Click for buyer financial information)
Target:  North Arkansas Bancshares, Inc. (Click for target financial information)
Deal Type:  Bank & Thrift Company
Announcement Date 11/20/01   Announced Deal Value ($M) 4.5
Status Completed   Announced Deal Value Per Share ($) 15.00
Completion Date 6/18/02      
 
Deal Summary
This deal will give Pocahontas Bancorp an additional branch and another 14.74% of Jackson County's roughly $206.3M in deposits, for a combined 35.92% share. Three other institutions operate in the market, which Pocahontas entered in May through a $27.4M acquisition of Walden/Smith Financial Group Inc. Pocahontas Bancorp's branch network currently covers nine counties in northeast Arkansas. North Arkansas Bancshares converted in December 1997 and deregistered last January. The deal could have been terminated if Pocahontas' average stock price was below $7 or above $11.

Deal Pricing Ratios
  Announcement Completion
Price / Book (%) 101.76 99.17
Price / Tangible Book (%) 103.18 100.42
Price / LTM EPS (x) 31.78 52.48
Price / Deposits (%) 14.96 15.79
Price / Assets (%) 10.56 11.71
Tang Book Premium / Core Deposits (%) 0.53 0.08


Deal Terms

Description of Consideration
North Arkansas received $15 in Pocahontas common stock for each share held. Seller's financials are for Newport Federal Savings Bank.
Accounting Method NA   Lockup Agreement Yes
In-State Transaction? Yes   Strike Price ($) 11.25
Merger of Equals? No   % of Shares Outstanding 19.90
Geographic Expansion? In Market   Shares Under Option 55,802
Goodwill Generated ($000) NA   Core Deposit Intangibles ($000) 600
Estimated Cost Savings (%) 33.00   Est. Restructuring Charges ($000) NA
Termination Fee ($000) 0  
Exchange Ratio
(Common For Common)
1.5150  
         
Consideration Breakout
Cash ($M)   0
Common Stock ($M)   4.5
Common Shares Issued   442,665
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
RP Financial LC
 
Seller Yes Ferguson & Co.
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Luse Gorman PC
 
Seller Yes Stradley Ronon Stevens & Young

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