Mississippi bank gets bigger with acquisition of Texas, Florida financial operations
A Mississippi based bank announced Wednesday plans to acquire two other financial institutions, one in Florida and one in Texas which will add more than $730 million in deposits to the company.
BancorpSouth Bank (NYSE: BXS) announced merger agreements with Summit Financial Enterprises, Inc., the parent company of Summit Bank, National Association with operations in Florida and Alstyne Financial Corporation, the parent company of Texas Star Bank (collectively referred to as “Texas Star”).
Both mergers will result in the Texas and Florida operations falling under the operations of BancorpSouth Bank.
The deal with Summit will substantially expand BancorpSouth’s presence in Florida, where it currently has one full-service banking office in Miramar Beach, Florida, and one mortgage loan production office in Crestview, Florida.
Summit offers a comprehensive range of personal and business accounts, lending solutions, wealth management and investment services through its four offices located in Panama City, Panama City Beach, Fort Walton Beach and Pensacola, Florida.
As of December 31, 2018 (unaudited), Summit, on a consolidated basis, reported total assets of $472 million, total loans of $297 million and total deposits of $402 million.
Under the terms of the merger agreement, BancorpSouth Bank will issue 2.5 million shares of BancorpSouth Bank common stock, plus $20 million in cash, for all outstanding shares of Summit Financial Enterprises, Inc. capital stock, subject to certain conditions and potential adjustments. The terms of the agreement provide for a collar with respect to the total deal value ranging from $95.0 million to $107.5 million. If necessary, the share count may be adjusted downward or the cash consideration may be adjusted upward to accommodate the respective boundaries of the collar.
“We are excited to announce this agreement with Summit,” stated Dan Rollins, Chairman and Chief Executive Officer of BancorpSouth Bank. “The opportunity to expand our presence in these strong and growing markets is exciting. We’re looking forward to serving more people along Florida’s Emerald Coast.”
Texas Star, which was founded in 1890 in Van Alstyne, Texas, operates eight locations, including seven full-service banking offices in Collin and Grayson counties in Texas, and one loan production office in Durant, Oklahoma. The merger will expand BancorpSouth’s presence in the Dallas-Fort Worth, Texas CMSA, giving it a total of seven full-service banking locations in the market, as well as additional locations north of Dallas, Texas, and a location in Oklahoma.
As of December 31, 2018 (unaudited), Texas Star, on a consolidated basis, reported total assets of $378 million, total loans of $317 million and total deposits of $329 million. Upon the consummation of this acquisition as well as the previously announced acquisition of Casey Bancorp Inc., BancorpSouth Bank will have 71 full-service banking offices, five mortgage loan production offices and four insurance offices in Texas with total deposits in Texas of approximately $3.5 billion and total loans of approximately $3.9 billion.
Under the terms of the merger agreement, BancorpSouth Bank will issue 2.1 million shares of BancorpSouth Bank common stock, plus $20.5 million in cash, for all outstanding shares of Van Alstyne Financial Corporation capital stock, subject to certain conditions and potential adjustments. The terms of the merger agreement provide for a collar with respect to the total deal value ranging from $80.0 million to $86.7 million. If necessary, the share count may be adjusted downward or the cash consideration may be adjusted upward to accommodate the respective boundaries of the collar.
BancorpSouth Bank (NYSE: BXS) is headquartered in Tupelo, Mississippi, with approximately $18 billion in assets. BancorpSouth operates approximately 285 full-service branch locations as well as additional mortgage, insurance and loan production offices in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.
Four police officers in Mississippi have been fired after a man died last month following a confrontation. The city of... read more