Simmons First National Corporation is seeking to bulk up its branch footprint with proposed purchases of Tennessee local banks and Landmark Community Bank and Triumph Bancshares for $146.3 million and $131.6 million, respectively, by Q4 2021. The deals would bring Simmons’ asset size to $25.2 billion, while its loan book would reach $13.7 billion and its deposit base would hit $19.8 billion.
Simmons’ deals are just the latest in a string of regional tie-ups announced over the last six months—here are a few notable ones we’ve covered:
Landmark and Triumph give Simmons the scale needed to take on larger banks in Tennessee, like First Horizon and Regions. The timing is especially helpful for Simmons to cash in on potential increases to in-branch banking as the US enters into a post-pandemic reality—it’s seeking to add 14 branches, bringing its total to 212 across the US. Additionally, the regional banking player’s larger deposit base (its statewide depository ranking would rise from 13th to 9th when the deal closes) will give it a bigger source of low-cost funds which it can use to help pay for future investments to shore up its offerings in the digital space. Meanwhile, the acquisitions would benefit Simmons’ loan portfolio in two different ways: The bulk of Landmark’s loans are on the consumer side, while Triumph’s are mainly for commercial.