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BancorpSouth's (BXS) Two Merger Deals Receive Regulatory Nod
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BancorpSouth Bank has received necessary regulatory approvals from the Federal Deposit Insurance Corporation to go ahead with the previously announced mergers with National United Bancshares, Inc., the parent company of National United, and with FNS Bancshares, Inc., the parent company of FNB Bank. Both the deals are expected to close on May 1, 2021.
As of Dec 31, 2021, National United and FNS Bancshares collectively reported assets worth $1.5 billion, loans of $930 million and deposits of $1.4 billion.
Deal Details
The merger agreement with FNS Bancshares was announced in January 2021. Per the terms, BancorpSouth will issue 2,975,000 shares of common stock and distribute $18 million in cash for all outstanding shares of FNS Bancshares capital stock. Based upon the closing price of BancorpSouth stock on Jan 12, 2021, the purchase price has been fixed at $108.4 million.
The acquired company operates 17 full-service banking offices in Alabama, Georgia and Tennessee. With this deal, BancorpSouth will foray into Georgia and bolster presence in the others.
On the other hand, the deal with National United was announced in December 2020. BancorpSouth will acquire the stakes in National United for $33.25 million in cash and 3.11 million of its own shares. The acquisition is anticipated to enhance BancorpSouth’s presence in the central region of Texas.
Upon completion of the transaction, National United’s president and CEO Eugene Worthington will serve as BancorpSouth's Area Chairman, while FNS Bancshares CEO Steve Rownd will serve as a BancorpSouth division president.
Our Take
Aided by its solid liquidity position, BancorpSouth has been making strategic investments. With these acquisitions, BancorpSouth can expedite expansion of customer base and geographical presence.
Notably, prior to the above proposed buyouts, the company acquired Alexander & Sanders Insurance Agency, Inc. in October 2020 and Texas First Bancshares in January. These buyouts enabled BancorpSouth to expand its insurance-related operations in Louisiana and strengthen footprint in Texas.
Similar to BancorpSouth, several other financial firms have been undertaking efforts to expand operations. M&T Bank Corporation (MTB - Free Report) and People’s United Financial Inc. announced a merger deal earlier in 2021. The all-stock deal, worth $7.6 billion, is expected to close in the fourth quarter of 2021, subject to necessary approvals
Also, Peoples Bancorp Inc. (PEBO - Free Report) has inked a deal to acquire Premier Financial Bancorp, Inc., which will further solidify its position across several states. The all-stock deal, expected to close in the third quarter of 2021.
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BancorpSouth's (BXS) Two Merger Deals Receive Regulatory Nod
BancorpSouth Bank has received necessary regulatory approvals from the Federal Deposit Insurance Corporation to go ahead with the previously announced mergers with National United Bancshares, Inc., the parent company of National United, and with FNS Bancshares, Inc., the parent company of FNB Bank. Both the deals are expected to close on May 1, 2021.
As of Dec 31, 2021, National United and FNS Bancshares collectively reported assets worth $1.5 billion, loans of $930 million and deposits of $1.4 billion.
Deal Details
The merger agreement with FNS Bancshares was announced in January 2021. Per the terms, BancorpSouth will issue 2,975,000 shares of common stock and distribute $18 million in cash for all outstanding shares of FNS Bancshares capital stock. Based upon the closing price of BancorpSouth stock on Jan 12, 2021, the purchase price has been fixed at $108.4 million.
The acquired company operates 17 full-service banking offices in Alabama, Georgia and Tennessee. With this deal, BancorpSouth will foray into Georgia and bolster presence in the others.
On the other hand, the deal with National United was announced in December 2020. BancorpSouth will acquire the stakes in National United for $33.25 million in cash and 3.11 million of its own shares. The acquisition is anticipated to enhance BancorpSouth’s presence in the central region of Texas.
Upon completion of the transaction, National United’s president and CEO Eugene Worthington will serve as BancorpSouth's Area Chairman, while FNS Bancshares CEO Steve Rownd will serve as a BancorpSouth division president.
Our Take
Aided by its solid liquidity position, BancorpSouth has been making strategic investments. With these acquisitions, BancorpSouth can expedite expansion of customer base and geographical presence.
Notably, prior to the above proposed buyouts, the company acquired Alexander & Sanders Insurance Agency, Inc. in October 2020 and Texas First Bancshares in January. These buyouts enabled BancorpSouth to expand its insurance-related operations in Louisiana and strengthen footprint in Texas.
Shares of this Zacks Rank #3 (Hold) company have gained 43.8% over the past six months compared with the industry's growth of 71.7%. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Similar to BancorpSouth, several other financial firms have been undertaking efforts to expand operations. M&T Bank Corporation (MTB - Free Report) and People’s United Financial Inc. announced a merger deal earlier in 2021. The all-stock deal, worth $7.6 billion, is expected to close in the fourth quarter of 2021, subject to necessary approvals
Also, Peoples Bancorp Inc. (PEBO - Free Report) has inked a deal to acquire Premier Financial Bancorp, Inc., which will further solidify its position across several states. The all-stock deal, expected to close in the third quarter of 2021.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
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