Kroll Bond Rating Agency Comments on Simmons First National
Corporation and First Texas BHC, Inc. Merger
NEW YORK, NY (January 24, 2017) – Kroll Bond Rating Agency (KBRA) comments on
Simmons First National Corporation and First Texas BHC, Inc. Merger. The report makes the
following key points:
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Simmons First National Corporation (NASDAQ: SFNC, “Simmons”) and First Texas
BHC, Inc. (“First Texas”) announced a definitive agreement and plan of merger with
Simmons First National Corporation as the surviving entity.
The deal is expected to close in the third quarter of 2017, and Simmons anticipates
the merger to be accretive in the first full year of operation.
After completion of the merger, Simmons’ branch network will expand to 206
locations throughout Arkansas, Tennessee, Texas, Oklahoma, Missouri, Kansas, and
Colorado with pro-forma total assets of approximately $13.5 billion.1
In October 2016, KBRA affirmed the deposit rating of BBB+ and short-term deposit
rating of K2 for First Texas’ bank subsidiary, Southwest Bank. The outlook on the
long-term rating is stable.
Simmons appears to have sound overall financial condition. As of third quarter 2016
data, KBRA’s Subscription Rating Service (SRS) rated Simmons’ lead subsidiary,
Simmons Bank, B- on the financial strength rating (FSR) scale.
Ratings of Southwest Bank will likely be withdrawn when the merger closes, given
that First Texas and Southwest Bank will be merged into Simmons First National
Corporation and Simmons Bank, respectively.
The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating
Methodology published on February 19, 2016.
Please click here to view the report.
Analytical Contacts:
Thomas Curley, Senior Analyst
[email protected], (301) 969-3245
Christopher Whalen, Senior Managing Director
[email protected], (646) 731-2366
Joseph Scott, Managing Director
[email protected], (646) 731-2438
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized
Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of
Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
Includes pending acquisitions of Hardeman County Investment Company, Southwest Bancorp, Inc., and First
Texas, BHC, Inc.
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