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Southern Bancorp Plans To Raise $20M

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The ownership of Southern Bancorp Inc. recently underwent change to simplify its stock structure and create a more market-friendly organization.

The parent company of Arkadelphia’s Southern Bancorp Bank now has one class of voting common stock and one class of nonvoting common stock.

Previously, Southern had five different classes of common stock. The new structure makes it easier for private place-ment investment as Southern Bancorp embarks on its 2017 capital campaign.

“We would love to have $20 million to $25 million,” said Darrin Williams, CEO of Southern Bancorp Inc. “We plan to close the capital campaign by the end of the year.”

Both classes of common stock have dividend rights, and nonvoting shareholders have the right to convert their holdings to voting shares. The new structure will allow the bank to declare its first ever dividend for all common shareholders in the second quarter: $85,188.

During 2016, the bank declared dividends totaling $22.5 million. The money was used by Southern Bancorp Inc. to help pay off its remaining TARP debt.

The holding company initially participated in TARP’s capital purchase program to the tune of $11 million.

Southern exchanged the CPP funding in 2010 for more favorable terms and expanded the government investment to $33.8 million under TARP’s Community Development Capital Initiative program.

The funds helped Southern Bancorp expand its footprint with acquisitions of the $135 million-asset Timberland Bank of El Dorado and First Delta Bankshares Inc., the $309 million-asset holding company for First National Bank of Blytheville and the Bank of Trumann.

The stock restructuring will give Southern more flexibility to use shares in future acquisitions as well.

The purchase of the $42 million-asset Farmers Bank of Hamburg marked the first time Southern struck a deal that wasn’t all cash. The $4.5 million transaction is a 60-40 mix of stock and cash.

Southern Bancorp Bank, Arkadelphia
Staff: 320          Full-Service Locations: 36 in Arkansas and Mississippi
(All dollars in thousands)

  Total Assets Equity Capital Noncurrent Loans Net Income
2016 $1,149,088 $129,981 $17,334 $10,143
2015 $1,185,130 $142,755 $9,760 $9,818
2014 $1,172,557 $136,033 $5,957 $11,524
2013 $1,150,854 $119,566 $7,676 $9,513
2012 $1,117,585 $122,551 $7,070 $10,822
2011 $1,147,058 $119,129 $9,745 $7,983
2010* $1,078,662 $111,098 $14,174 $9,061
2009** $709,743 $62,287 $8,191 $4,750
2008 $201,285 $18,689 $985 $1,966

*Reflects the acquisition of the $210 million-asset First National Bank of Blytheville and $99 million-asset Bank of Trumann
**Reflects the purchase of the $135 million-asset Timberland Bank of El Dorado and the charter consolidations with Southern Bancorp Bank of Helena and Southern Bancorp Bank of Mississippi
Source: Federal Deposit Insurance Corp.


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