Mergers and Acquisitions
Transaction Details
DD&F CONSULTING GROUP 
Deal Overview
Buyer:  Magnolia Banking Corporation (Click for buyer financial information)
Target:  Southern State Bancshares Inc (Click for target financial information)
Deal Type:  Bank & Thrift Company
Announcement Date 9/12/07   Announced Deal Value ($M) 13.6
Status Completed   Announced Deal Value Per Share ($) NA
Completion Date 12/14/07      
 
Deal Summary
Magnolia, Ark.-based Magnolia Banking Corp. unit Farmers Bank & Trust Co. has agreed to acquire Malvern, Ark.-based Southern State Bancshares Inc. Magnolia Banking Corp. will enter Saline County, Ark. with 1 branch to be ranked No. 11 with a 0.8% share of $743.0 million in total market deposits, and will enter Hot Spring County, Ark. with 2 branches to be ranked No. 4 with a 15.7% share of $410.6 million in total market deposits. Ratios are based on June 30, 2007 small parent Equity and LTM Net Income of $6,952,000 and $667,000, respectively.

Deal Pricing Ratios
  Announcement Completion
Price / Book (%) 195.83 195.83
Price / Tangible Book (%) 195.83 195.83
Price / LTM EPS (x) 20.41 20.41
Price / Deposits (%) 20.50 20.89
Price / Assets (%) 17.03 17.05
Tang Book Premium / Core Deposits (%) 14.19 14.75


Deal Terms

Description of Consideration
Magnolia Banking Corp. paid approximately $13.6 million in cash to acquire Southern State Bancshares Inc. Target's financials are for Southern State Bank. Buyer's financials are for Farmers Bank & Trust Co.
Accounting Method NA   Lockup Agreement No
In-State Transaction? Yes   Strike Price ($) 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) NA
Estimated Cost Savings (%) NA   Est. Restructuring Charges ($000) NA
Termination Fee ($000) NA  
         
Consideration Breakout
Cash ($M)   13.6
Common Stock ($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 Friday Eldredge & Clark
 
Seller Yes Dover Dixon Horne PLLC

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