Mergers and Acquisitions
Transaction Details
DD&F CONSULTING GROUP 
Deal Overview
Buyer:  Simmons First National Corporation (Click for buyer financial information)
Target:  Lincoln Bankshares Inc. (Click for target financial information)
Deal Type:  Bank & Thrift Company
Announcement Date 8/25/98   Announced Deal Value ($M) 12.0
Status Completed   Announced Deal Value Per Share ($) 1,208.97
Completion Date 1/19/99      
 
Deal Summary
Simmons First National announced its second deal of 1998 with an agreement to acquire Lincoln Bankshares. Bank of Lincoln, a unit of Liberty Bankshares, operates two branches in Lincoln and Prairie Grove, AR. Upon completion, Bank of Lincoln will be merged into Simmons First Bank of Northwest Arkansas. The deal will strengthen Simmons First's position in Washington County, where the company currently ranks No. 9. On a pro forma basis, Simmons First will hold 5.32% deposit market share in this county, good for fifth place. Pricing ratios adjusted for $4,864,000 equity at the holding company level.

Deal Pricing Ratios
  Announcement Completion
Price / Book (%) 220.71 248.76
Price / Tangible Book (%) 220.71 248.76
Price / LTM EPS (x) 13.59 14.30
Price / Deposits (%) 18.16 17.98
Price / Assets (%) 16.39 16.20
Tang Book Premium / Core Deposits (%) 12.40 13.64


Deal Terms

Description of Consideration
Simmons First exchanged 30.41445 shares for each Lincoln share held. Seller's financials are for Bank of Lincoln.
Accounting Method Pooling   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) 0   Core Deposit Intangibles ($000) 0
Estimated Cost Savings (%) NA   Est. Restructuring Charges ($000) 675
Termination Fee ($000) 0  
Exchange Ratio
(Common For Common)
30.4145  
         
Consideration Breakout
Cash ($M)   0
Common Stock ($M)   12.1
Common Shares Issued   301,833
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 Stephens Inc.
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Williams & Anderson
 
Seller Yes Horne Hollingsworth & Parker

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