Mergers and Acquisitions
Transaction Details
DD&F CONSULTING GROUP 
Deal Overview
Buyer:  Liberty Bancshares, Inc. (Click for buyer financial information)
Target:  Arkansas State Bancshares, Inc. (Click for target financial information)
Deal Type:  Bank & Thrift Company
Announcement Date 6/25/04   Announced Deal Value ($M) 31.7
Status Completed   Announced Deal Value Per Share ($) 550.88
Completion Date 10/4/04      
 
Deal Summary
Liberty Bancshares has agreed to acquire an 80% stake of Arkansas State Bancshares. Concurrently,  Russellville Bancshares will acquire the remaining minority interest. Liberty will move into the northwestern corner of Arkansas and enter Benton County with a 5.1% share of about $2.4 billion deposits and Washington County with a 0.6% share of about $2.3 billion deposits. Arkansas State President Art Morris said in a release, "Liberty Bancshares and Russellville Bancshares both have the community bank concept." Pricing ratios are based on Dec. 31, 2003 small parent equity of $26,118,000 and LTM net income of $733,000.

Deal Pricing Ratios
  Announcement Completion
Price / Book (%) 151.86 151.86
Price / Tangible Book (%) 151.86 151.86
Price / LTM EPS (x) 54.11 54.11
Price / Deposits (%) 28.32 27.35
Price / Assets (%) 23.83 23.22
Tang Book Premium / Core Deposits (%) 12.20 11.66


Deal Terms

Description of Consideration
Liberty paid $550.875 per share in cash to acquire 80% of Arkansas State's shares outstanding. Seller's financials are for Arkansas State Bank.
Accounting Method NA   Lockup Agreement No
In-State Transaction? Yes   Strike Price ($) 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 ($M)   31.7
Common Stock ($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 Yes Sheshunoff & Co.
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Dover Dixon Horne PLLC
 
Seller Yes Bracewell LLP

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