Mergers and Acquisitions
Transaction Details
Deal Overview
Buyer:  Pocahontas Bancorp Inc. (Click for buyer financial information)
Target:  Peoples Bank (Click for target financial information)
Deal Type:  Bank & Thrift Company
Announcement Date 1/16/02   Announced Deal Value ($M) 8.0
Status Completed   Announced Deal Value Per Share ($) NA
Completion Date 5/31/02      
Deal Summary
Pocahontas has agreed to acquire Peoples Bank of Imboden, a unit of Spring River Bancshares. The deal boosts Pocahontas to first place in Lawrence County, giving it a combined 45.37% share of about $222.5M deposits. Pocahontas currently ranks fourth of five institutions in the market. Management expects the deal to be immediately accretive to earnings. The final purchase price will be calculated near the closing of the transaction and will be equal to the sum of 5% of Peoples Bank's local deposits and Peoples Bank's tangible book value.

Deal Pricing Ratios
  Announcement Completion
Price / Book (%) 156.56 149.23
Price / Tangible Book (%) 156.56 149.23
Price / LTM EPS (x) 12.64 11.07
Price / Deposits (%) 13.64 13.72
Price / Assets (%) 12.45 12.42
Tang Book Premium / Core Deposits (%) 6.26 5.82

Deal Terms

Description of Consideration
Pocahontas paid $8.4M in cash to acquire Peoples Bank from Spring River Bancshares. At announcement the purchase price was estimated at about $8.0M.
Accounting Method NA   Lockup Agreement No
In-State Transaction? Yes   Strike Price ($) NA
Merger of Equals? No   % of Shares Outstanding NA
Geographic Expansion? In Market   Shares Under Option NA
Goodwill Generated ($000) NA   Core Deposit Intangibles ($000) 2,500
Estimated Cost Savings (%) NA   Est. Restructuring Charges ($000) NA
Termination Fee ($000) 0  
Consideration Breakout
Cash ($M)   8.4
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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