FOURTH FINANCIAL CORP. ANNOUNCES AGREEMENT IN PRINCIPLE WITH LSB INDUSTRIES TO ACQUIRE OKLAHOMA CITY-BASED EQUITY BANK FOR SAVINGS, F.A.
WICHITA, Kan., Dec. 1 /PRNewswire/ -- Fourth Financial Corp. (NASDAQ-NMS: FRTH) today announced its BANK IV Oklahoma subsidiary has reached an agreement in principle with Oklahoma City-based LSB Industries, Inc. (AMEX: LSB) to acquire LSB's financial services subsidiary, Equity Bank for Savings, F.A. The cash transaction is valued at approximately $93 million. The acquisition, which is subject to negotiation and the execution of a definitive agreement as well as regulatory approvals, is expected to be completed in the spring of 1994, when Equity would become part of BANK IV Oklahoma, N.A., the company said. Darrell G. Knudson, Fourth Financial chairman, stated that the complex acquisition would include, prior to closing, the repurchase by LSB Industries of certain substantial non-banking assets. Fourth Financial will acquire the following: core deposits totaling $340 million; loans totaling $162 million; a $200 million mortgage servicing portfolio of one-to-four family mortgage loans; a mortgage banking network which is projected to originate $100 million in loans in 1993; 14 branch locations, including nine in the greater Oklahoma City market; a credit card division which provides credit card services to 90,000 customer accounts, 180 agent banks and 8,600 merchants; and tax loss carry forwards totaling $64 million. The transaction will result in goodwill and other intangibles of approximately $20 million, Knudson said. "This acquisition will enable BANK IV to have a widespread retail branch network, particularly in the greater Oklahoma City area," said Knudson. "Equally important, Equity is recognized as the largest originator of conventional single family residential mortgage loans in the market it serves and the largest provider of credit card services in Oklahoma." BANK IV Oklahoma is owned and operated by Fourth Financial Corp., a $6.5 billion bank holding company. BANK IV Oklahoma serves customers from 31 offices in seven communities. The bank has assets of $1.6 billion. In addition to today's announcement, three other acquisitions have been announced or are pending in Oklahoma. They include the $206 million Western National Bank in Tulsa, the $117 million Security Bank & Trust Company of Ponca City, and the $42 million Metro Bank of Broken Arrow. After all four acquisitions are completed, BANK IV Oklahoma will have assets of $2.3 billion. Fourth Financial's common and preferred stocks are traded on the NASDAQ over-the-counter market under the symbols "FRTH" and "FRTHZ," respectively. LSB Industries' common stock is listed for trade on the American Stock Exchange. -0- 12/1/93 /CONTACT: Michael J. Shonka, chief financial officer 316-261-4510, or Bernie McLaughlin, vice president marketing, 316-261-2095, both of Fourth Financial Corp., or Tony M. Shelby, chief financial officer of LSB Industries, Inc., 405-235-4546/ (FRTH LSB)
CO: Fourth Financial Corp.; LSB Industries, Inc. ST: Oklahoma; Kansas IN: FIN SU: TNM
JG-PS -- NY057 -- 9266 12/01/93 12:17 EST
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|Date:||Dec 1, 1993|
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