Boston, MA 05/14/2014 (wallstreetpr) – Simmons First National Corporation (NASDAQ:SFNC) expects to spend a little over $243 million before the end of 4Q2014 in the latest acquisition deal. The company announced entering agreement with Community First Bancshares to acquire the Tennessee, Union City-based bank.
The latest acquisition adds to the series of asset purchases that the company has made in recent times as it seeks to expand market share and diversify operations. The company also intends to enhance the footprint in the market that it already serves to improve customer relations.
Though widespread acquisition is likely to eat up the company’s cash hoard, it expects to moves to attract strong cash flow in the long-run.
Buying spree
Simmons First National Corporation (NASDAQ:SFNC) has been in a buying spree in recent times. Before the announcement of the deal with Community First Bancshares, the company had in less than two months earlier announced a deal to takeover Delta Trust and Bank in a $66 million transaction. The Delta Trust and Bank deal was preceded by the $53.6 million bid for the bankrupt Metropolitan National Bank.
Although the company has already made several acquisitions, it is far from done with property purchases. The company’s CEO George Makris Jr., hinted that the company will continue to acquire promising assets with a focus on markets such as Missouri and Kansas.
More than apparent
Simmons First National Corporation (NASDAQ:SFNC)’s acquisition strategy has several twists in it. In addition to the company seeking to add to its portfolio businesses that have widespread operations in key markets, it also intends to only buy companies that have a positive reputation in the communities they serve.
Simmons First National Corporation (NASDAQ:SFNC) posted 1Q net income of $4.35 million, down from $5.94 million in the same quarter a year ago. The earnings were, however, impacted by charges associated with the acquisition of Metropolitan National Bank. Therefore, the company generated core earnings of $7.48 million against $6.08 million in a year ago quarter.
