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BancorpSouth (BXS) Receives FDIC Approval for Acquisitions
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BancorpSouth Bank has secured consent from the Federal Deposit Insurance Corporation (FDIC) for the acquisitions of Texas based Casey Bancorp, Inc. and its subsidiary, Grand Bank of Texas, and Alabama based Merchants Trust, Inc., along with the company’s arm, Merchants Bank.
The company expects to close both transactions on Apr 1, subject to fulfillment of customary closing conditions. These deals were announced on Nov 13, 2018.
Following the closure of the deals, BancorpSouth will have roughly $18.6 billion in assets.
Per the terms of the deal, announced in November 2018, for the acquisition of Merchants Trust, BancorpSouth will likely issue 950,000 shares of common stock for all outstanding shares of capital stock of the former. Further, the bank will likely pay $8 million in cash, subject to certain conditions and adjustments. The total deal value, which has been set at $37.5 million, provides for a collar of $37.5-$43 million.
Likewise for the Casey Bancorp buyout, BancorpSouth will issue 1,275,000 shares of common stock for all outstanding shares of capital stock of the former. Along with this, the company will likely pay $11 million in cash, subject to certain conditions and adjustments. The deal, valued at $51.75 million, provides for a collar ranging between $51.75 million and $56.75 million.
Post merger, Michael Casey, present chairman of the board of directors and CEO of Grand Bank, will serve as BancorpSouth’s Dallas Area chairman. Also, Merchant Bank CEO Joe L. Bedwell will serve as BancorpSouth's Clarke County chairman. In addition, Jim Reid, president and chief financial officer of Merchant Bank, will take charge as BancorpSouth's Clarke County president.
Driven by a solid liquidity position, the bank has been making strategic investments through M&As for the past few years. Recently, the bank entered into agreement to acquire Van Alstyne Financial Corporation and Summit Financial Enterprises, Inc.
The company has maintained an impressive acquisition spree, fortifying its footprint in various areas. These initiatives will likely keep boosting its earnings in the days ahead.
Shares of the company have gained 18.7%, over the past three months, compared to the 21.2% rise registered by the industry.
City Holding Company’s (CHCO - Free Report) shares have gained 13.7% over the past three months. Its earnings estimate for 2019 remained unchanged, over the past 60 days. The stock currently sports a Zacks Rank #1.
Franklin Financial Network, Inc’s shares have appreciated 19.2% in three months’ time. Its current-year earnings estimate has been revised 1.9% upward, in 30 days’ time. At present, it flaunts a Zacks Rank of 1.
Shares of Southern National Bancorp of Virginia, Inc have rallied 13.8% over the past three months. Its earnings estimate for the ongoing year remained unchanged, over the past 60 days. Currently, it sports a Zacks Rank of 1.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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BancorpSouth (BXS) Receives FDIC Approval for Acquisitions
BancorpSouth Bank has secured consent from the Federal Deposit Insurance Corporation (FDIC) for the acquisitions of Texas based Casey Bancorp, Inc. and its subsidiary, Grand Bank of Texas, and Alabama based Merchants Trust, Inc., along with the company’s arm, Merchants Bank.
The company expects to close both transactions on Apr 1, subject to fulfillment of customary closing conditions. These deals were announced on Nov 13, 2018.
Following the closure of the deals, BancorpSouth will have roughly $18.6 billion in assets.
Per the terms of the deal, announced in November 2018, for the acquisition of Merchants Trust, BancorpSouth will likely issue 950,000 shares of common stock for all outstanding shares of capital stock of the former. Further, the bank will likely pay $8 million in cash, subject to certain
conditions and adjustments. The total deal value, which has been set at $37.5 million, provides for a collar of $37.5-$43 million.
Likewise for the Casey Bancorp buyout, BancorpSouth will issue 1,275,000 shares of common stock for all outstanding shares of capital stock of the former. Along with this, the company will likely pay $11 million in cash, subject to certain conditions and adjustments. The deal, valued at $51.75 million, provides for a collar ranging between $51.75 million and $56.75 million.
Post merger, Michael Casey, present chairman of the board of directors and CEO of Grand Bank, will serve as BancorpSouth’s Dallas Area chairman. Also, Merchant Bank CEO Joe L. Bedwell will serve as BancorpSouth's Clarke County chairman. In addition, Jim Reid, president and chief
financial officer of Merchant Bank, will take charge as BancorpSouth's Clarke County president.
Driven by a solid liquidity position, the bank has been making strategic investments through M&As for the past few years. Recently, the bank entered into agreement to acquire Van Alstyne Financial Corporation and Summit Financial Enterprises, Inc.
The company has maintained an impressive acquisition spree, fortifying its footprint in various areas. These initiatives will likely keep boosting its earnings in the days ahead.
Shares of the company have gained 18.7%, over the past three months, compared to the 21.2% rise registered by the industry.
Currently, the stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Key Picks
City Holding Company’s (CHCO - Free Report) shares have gained 13.7% over the past three months. Its earnings estimate for 2019 remained unchanged, over the past 60 days. The stock currently sports a Zacks Rank #1.
Franklin Financial Network, Inc’s shares have appreciated 19.2% in three months’ time. Its current-year earnings estimate has been revised 1.9% upward, in 30 days’ time. At present, it flaunts a Zacks Rank of 1.
Shares of Southern National Bancorp of Virginia, Inc have rallied 13.8% over the past three months. Its earnings estimate for the ongoing year remained unchanged, over the past 60 days. Currently, it sports a Zacks Rank of 1.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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