Kroll Bond Rating Agency Comments on Simmons First National Corporation and First Texas BHC, Inc. Merger

Kroll Bond Rating Agency (KBRA) comments on Simmons First National Corporation and First Texas BHC, Inc. Merger. The report makes the following key points:

• 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• Ratings of Southwest Bank will likely be withdrawn when the merger closes, given that First Texas and Southwest Bank will be merged into Simmons First National Corporation and Simmons Bank, respectively.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.

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).

View source version on businesswire.com: http://www.businesswire.com/news/home/20170124006407/en/