BOATMEN'S WILL PURCHASE LARGEST S&L IN ARKANSAS

ST. LOUIS - Boatmen's Bancshares Inc. has announced that it has reached an agreement to acquire Superior Federal Bank, Arkansas' largest savings and loan.

St. Louis-based Boatmen's, with assets of $17.6 billion, is among the 40 largest bank holding companies in the country and is the largest banking organization in Missouri.

Superior Federal, based in Fort Smith, Ark., has assets of about $700 million and operates 29 branches in 19 communities. It reported a net income of $4.8 million for its fiscal year ending Sept. 30.

The agreement, which is expected to be completed during the second quarter of this year, calls for Boatmen's to provide Superior Federal with about $28 million in equity capital.

The purchase is expected to make an immediate contribution to earnings, said Andrew B. Craig III, chairman, president and chief executive of Boatmen's.

"Superior Federal primarily serves northwestern Arkansas, a prosperous area that includes the corporate headquarters of companies such as Wal-Mart and Tyson Foods," Craig said. "It has a strong customer base, with more personal checking accounts than any financial institution in the state."

The current management and board of directors of Superior Federal will remain in place and Boatmen's will continue to operate it as a savings bank subsidiary, Craig said.

Boatmen's operates more than 220 locations in Missouri including Cape Girardeau Illinois, Tennessee and Oklahoma. It also has announced an agreement to acquire First Interstate of Iowa.