Mergers and Acquisitions
Transaction Details
DD&F CONSULTING GROUP 
Deal Overview
Buyer:  Magnolia Banking Corporation (Click for buyer financial information)
Target:  First National Bancshares of Hempstead County, Inc. (Click for target financial information)
Deal Type:  Bank & Thrift Company
Announcement Date 7/14/14   Announced Deal Value ($M) 31.3
Status Completed   Announced Deal Value Per Share ($) 1,436.82
Completion Date 10/23/14      
 
Deal Summary
Magnolia, Ark.-based Magnolia Banking Corp. has acquired Texarkana, Texas-based First National Bancshares of Hempstead County Inc. Ratios at completion are based on First National Bancshares of Hempstead County Inc.'s June 30, 2014 small parent equity and LTM net income of $24,832,000 and $2,026,000 respectively.

Deal Pricing Ratios
  Announcement Completion
Price / Book (%) 125.99 125.99
Price / Tangible Book (%) 125.99 125.99
Price / LTM EPS (x) 23.76 23.76
Price / Deposits (%) 11.49 11.51
Price / Assets (%) 10.07 10.08
Tang Book Premium / Core Deposits (%) 3.06 3.07


Deal Terms

Description of Consideration
Magnolia Banking Corp. paid $1,436.82 per share in cash to acquire each outstanding share of First National Bancshares of Hempstead County Inc. Target financials are of 1st Bank NA. Magnolia Banking Corp. will enter Hempstead County, Ark. with four branches to be ranked first with a 32.98% share of approximately $354.07 million in total market deposits, will enter Lafayette County, Ark. with one branch to be ranked fourth with a 10.66% share of approximately $134.65 million in total market deposits, will expand in Bowie County, Texas, by two branches to be ranked fifth with a 8.26% share of approximately $1.28 billion in total market deposits, and will expand in Miller County, Ark., by one branch to be ranked fourth with a 4.33% share of approximately $894.78 million in total market deposits.
Accounting Method NA   Lockup Agreement No
In-State Transaction? Yes   Strike Price ($) NA
Merger of Equals? No   % of Shares Outstanding NA
Geographic Expansion? Partial Overlap   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 ($M)   31.3
Common Stock ($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 NA NA
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer NA NA
 
Seller NA NA

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