An Arkansas-based bank holding company is expanding into East Tennessee through the purchase of Citizens National Bank (CNB) in Athens, Tenn.
Simmons First National Corp. announced Wednesday it will pay about $77 million in stock and cash to buy the 108-year-old CNB, which operates nine bank branches in McMinn, Monroe, Roane and Anderson counties.
Citizens National Bank of Athens is the biggest bank in McMinn County, with assets of $552 million, and operates offices in Athens, Etowah, Madisonville, Sweetwater, Tellico Plains, Vonore, Kingston and Oak Ridge. Last year, CNB earned $6.4 million, up from $4.7 milllion the previous year.
George Makris Jr., the chairman and chief executive officer for the Pine Bluff, Ark.-based Simmons First National, said he expects to complete the bank purchase in the fourth quarter, subject to regulatory and shareholder approvals. After closing, CNB is expected to continue operating as a separate bank subsidiary of the company for an interim period until it's merged into Simmons Bank.
"As we continue to expand our community banking strategy, it's important that we find partners who have common goals, experience, culture and reputations as excellent corporate citizens," Makris said. "The CNB leadership has built a franchise focused on meeting the financial service needs of its customers in the markets it serves. We value that legacy and plan to continue to provide high levels of quality customer service."
The purchase will be the ninth bank purchased by Simmons since 1995. Founded in 1903, Simmons Bank is based in Pine Bluff, Ark., and currently operates 157 offices in Arkansas, Missouri, Mississippi and in Middle and West Tennessee.
Last year, Simmons earned $87.5 million, up from $45.4 million the previous year.
Paul G. Willson, the CNB chairman, said both Simmons and CNB "have their roots in rural markets and have successfully served the banking needs of their customers for more than 100 years."
CNB employed 151 persons and reported equity capital of $62.4 million at the end of 2015, according to reports filed with the Federal Deposit Insurance Corp.
Simmons has 1,933 employees and assets of more than $7.5 billion.
The purchase price will consist of 835,741 shares of Simmons common stock and $40.3 million in cash.
Shares of Simmons First National jumped nearly 1.9 percent, or $1.89 per share, in trading on the Nasdaq exchange Wednesday before closing at $45.79 per share.