Mergers and Acquisitions
Transaction Details
DD&F CONSULTING GROUP 
Deal Overview
Buyer:  Mountain Home Bancshares, Inc. (Click for buyer financial information)
Target:  Pocahontas Bankstock, Inc. (Click for target financial information)
Deal Type:  Bank & Thrift Company
Announcement Date 3/24/04   Announced Deal Value ($M) 17.5
Status Completed   Announced Deal Value Per Share ($) 409.98
Completion Date 6/30/04      
 
Deal Summary
Mountain Home will expand their existing branch footprint in the state of Arkansas to include Randolph, Sharp and Lawrence counties with the signing of a definitive agreement to acquire Pocahontas Bankstock. Mountain Home will assume the No. 2 rank in Randolph County, AR with 39.65% of about $250.6 million in deposits. Ratios at announcement are based on June 30, 2003 small parent equity of $11,148,000 and trailing-four-quarters' net loss of $111,000. Ratios at completion are based on Dec. 31, 2003 small parent equity of $11,281,000 and trailing-four-quarters' net income of $1,623,000.

Deal Pricing Ratios
  Announcement Completion
Price / Book (%) 148.01 155.27
Price / Tangible Book (%) 148.01 155.27
Price / LTM EPS (x) NM 16.60
Price / Deposits (%) 16.74 17.44
Price / Assets (%) 13.62 13.98
Tang Book Premium / Core Deposits (%) 6.44 7.20


Deal Terms

Description of Consideration
Mountain Home paid about $17.5 million in cash to acquire Pocahontas. Seller's financials are for Bank of Pocahontas.  
Accounting Method NA   Lockup Agreement No
In-State Transaction? Yes   Strike Price ($) 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) NA  
         
Consideration Breakout
Cash ($M)   17.5
Common Stock ($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 McAfee & Taft
 
Seller Yes Gerrish Smith Tuck PC

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