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BancorpSouth Bank Announces Florida and Texas Acquisitions

Tupelo, Miss.-based BancorpSouth Bank announced definitive agreements to acquire Summit Financial Enterprises Inc., the parent company of Summmit Bank, N.A., in Panama City, Fla., and Van Alstyne Financial Corp., the parent company of Texas Star Bank in Van Alstyne, Texas. Pursuant to the agreement, the two banks will be merged into BancorpSouth Bank.

The Florida deal will substantially expand BancorpSouth’s presence in that state, where it currently has a full-service banking office in Miramar Beach, and a mortgage loan production office in Crestview. Summit offers a full range of personal and business banking services through its four Florida offices in Panama City, Panama City Beach, Fort Walton Beach and Pensacola.

As of Dec. 31, 2018 (unaudited), Summit 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 its common stock, plus $20 million in cash, for all outstanding shares of Summit Financial Enterprises 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 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.

“The opportunity to expand our presence in these strong and growing markets is exciting,” stated Dan Rollins, chairman and CEO of BancorpSouth. “We’re looking forward to serving more people along Florida’s Emerald Coast.”

Andy Stein, president and CEO of Summit, said, “BancorpSouth was instrumental in helping us reopen our main office after it was hit by Hurricane Michael last year. The bank has already proven to be a great partner for us, and we’re confident that the combination of our two banks will bring opportunities and benefits to our customers, communities and employees.”

Upon completion of the transaction, Stein will serve as BancorpSouth’s Florida chairman.

The transaction is anticipated to close during the second half of 2019, pending regulatory approval and satisfaction of the other customary closing conditions.

Texas Star Bank operates eight locations, including seven full-service banking offices in Collin and Grayson counties in Texas, and a loan production office in Durant, Okla. The merger will expand BancorpSouth’s presence in the Dallas-Fort Worth CMSA, giving it a total of seven full-service banking locations in the market, as well as additional locations north of Dallas and one in Oklahoma.

As of Dec. 31, 2018, Texas Star 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 common stock, plus $20.5 million in cash, for all outstanding shares of Van Alstyne Financial 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 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.

“We’re looking forward to introducing our products and services to Texas Star’s customers and continuing the progress that its leadership team has already made in supporting the local communities,” stated BancorpSouth CEO Dan Rollins.

Randle Jones, president of Texas Star Bank, said, “This merger is an important milestone in our bank’s nearly 130-year history and will position us for continuted success.”

Both transactions are anticipated to close during the second half of 2019, pending regulatory approval and satisfaction on the other customary closing conditions.

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