NEWS: Merger Announcement
Regions and Arkansas Banking Company toMerge
August 6, 1998 01:02 PM
BIRMINGHAM, Ala.--(BUSINESS WIRE)--Aug. 6, 1998--Regions Financial Corporation RGBK and Arkansas Banking Company, of Jonesboro, Arkansas, jointly announced that an agreement in principle has been reached that provides for the merger of Arkansas Banking Company into Regions. The agreement in principle is subject to due diligence and to the signing of a definitive merger agreement. Under the terms of the agreement, Regions would exchange 2.85 shares of its common stock for each share of Arkansas Banking Company's common stock. The merger, which is anticipated to be accounted for as a pooling of interests, is expected to be consummated during the fourth quarter of 1998, pending approval of Arkansas Banking Company's stockholders and regulatory authorities, and other customary conditions of closing. The transaction is expected to be a tax-free reorganization for federal income tax purposes. Arkansas Banking Company's wholly owned banking subsidiaries operate in Lawrence, Craighead, Greene, Independence, Jackson, Clay and Mississippi counties in northeastern Arkansas. At July 31, 1998, Arkansas Banking Company had total assets of $343 million, deposits of $310 million and stockholders' equity of $22 million.
Carl E. Jones, Jr., President and Chief Executive officer of Regions, stated, "We are very pleased to affiliate with Arkansas Banking Company. It will fit perfectly with the banks that came to us through the First Commercial transaction. Arkansas Banking Company shares our belief in the importance of community banking and will be a good partner to expand our franchise in Arkansas. We look forward to serving the customers of the Arkansas Banking Company and to working with its directors, officers, employees and stockholders."
Sloan Rainwater, Chairman of Arkansas Banking Company, said, "We are extremely pleased to affiliate with Regions Financial. I know our customers, employees and stockholders will benefit from affiliation with a strong, major southern financial institution like Regions. Our customers can look forward to an expanded product line, increased convenience and additional services."
Regions Financial Corporation is a bank holding company providing banking services from 700 offices in Alabama, Arkansas, Florida, Georgia, Louisiana, Oklahoma, South Carolina, Tennessee and Texas. Regions also provides banking-related services in the fields of mortgage banking, insurance, securities brokerage and mutual funds. Regions' common stock is traded in the Nasdaq National Market System under the symbol RGBK. |
