Arkansas company buys out Landmark Bank
COLUMBIA - A company based in Arkansas announced Wednesday it is buying The Landrum Company, which owns Landmark Bank.
Simmons First National Corporation said according to the agreement, it will acquire all Landrum capital stock in the all-stock transaction.
John Howe, Chair of the Department of Finance at MU, explained that competition among banks is good for the consumer and puts stress on the banks. He said some small banks can struggle to cope with costs.
"Small banks can get overwhelmed from the cost regulation," Howe said.
Simmons bank will acquire The Landrum Company at the end of 2019. The official merger of Landmark Bank will take place the first half of 2020. After the Landrum Company closes, Landmark Bank will continue some operations as a separate bank for a short interim period until it has officially merged with Simmons Bank.
Caroline Makris, Public Relations Manager of Simmons Bank, said she thinks the transition will be smooth.
"Landmark and Simmons Bank are a really great match, a really good cultural feel. Simmons already has branch locations in MO, Oklahoma and Texas and we are in large markets and small markets similarly to landmark," Makris said.
Makris added the transition will allow customers to have access to additional products and services, greater lending opportunities and new technology due to Simmons size and scale.
Simmons has locations in Arkansas, Colorado, Illinois, Kansas, Missouri, Oklahoma, Tennessee, and Texas.
"Landmark Bank will fit in our organization perfectly," said George A. Makris, Jr., Simmons’ CEO in Wednesday's release. "Landmark Bank is a strong banking franchise with deep history and much success in the communities it serves, and I am thrilled that the Landmark Bank team has chosen to become our newest partner."
As of June 2019 Landrum had $3.3 billion in financial assests. Simmons has $17.9 billion, almost six times more than Landrum. Simmons aquired Landrum for $434 million, and Landmark epresents the largest individual bank purchased by Simmons to date.
“Simmons has grown to become an impressive regional bank known for successfully integrating its merger partners into its enterprise," said Kevin Gibbens, Landrum’s president, in the press release. "And that gives me great confidence in our combined future."