Renasant, the bank holding company for Renasant Bank, has agreed to acquire First Bancshares, the parent company of First Bank, in an all-stock deal valued at around $1.2bn.
Both American bank holding firms are listed on the New York Stock Exchange (NYSE).
Through the proposed deal, both parties aim to create a six-state Southeastern banking franchise. The enlarged bank holding firm is estimated to have around $25bn in total assets, $18bn in total loans, and total deposits of $21bn.
First Bancshares president and CEO Ray Cole said: “The First has always operated with a community-first mindset, building strong, trust-based relationships with our clients and the markets we serve.
“Going forward, we are excited for our customers, bankers and shareholders to experience our next chapter as we join Renasant and form a leading Southeast regional bank with the scale and capabilities of a larger bank while maintaining the community bank touch our customers have come to expect.”
Under the definitive agreement signed by the parties, First Bancshares’ shareholders will receive one share of Renasant common stock for each share they hold in First Bancshares. In addition, all First Bancshares’ options will be cashed out at their in-the-money value at the closing of the proposed merger.
Based on Renasant’s closing stock price of $37.09 per share on 26 July 2024, the implied transaction value is about $37.09 per share of First Bancshares.
Headquartered in Mississippi, First Bancshares operates 111 branches across the American states of Mississippi, Alabama, Louisiana, Georgia, and Florida. As of 30 June 2024, the bank holding firm had around $8bn in total assets, $5.3bn in total loans, and $6.6bn in total deposits.
Renasant, which is also based in Mississippi, has a 120-year history. The firm manages assets of around $17.5bn and operates 185 banking, lending, mortgage, and wealth management offices.
Its footprint spans across the states of Mississippi, Alabama, Tennessee, Florida, Georgia, North Carolina, and South Carolina.
Renasant CEO Mitch Waycaster said: “As two of the largest banks headquartered in Mississippi, each with a footprint across the Southeast, both Renasant and The First have grown to know and respect each other’s operating philosophy, dedication to providing best-in-class customer service and commitment to the communities in which we operate.
“As with Renasant, The First has expanded into some of the most dynamic, fastest growing markets in the Southeast. Together, we create a more valuable company with the meaningful scale needed to compete in today’s operating environment.”
In line with the merger, Renasant has announced the adoption of a community benefit plan.
Effective upon the deal’s completion, this $10.3bn, five-year plan aims to promote economic growth, expand access to financial services, and enhance inclusion within the combined footprint of Renasant and First Bancshares.
Subject to customary conditions, including the receipt of required regulatory approvals as well as the approvals of the respective shareholders of Renasant and First Bancshares, the transaction is anticipated to be completed in the first half of 2025.
Stephens is acting as Renasant’s exclusive financial adviser while Covington & Burling is serving as its legal adviser. Keefe, Bruyette & Woods is the exclusive financial adviser to First Bancshares with Alston & Bird as its legal adviser.
Earlier this month, Renasant sold the assets of Renasant Insurance to Sunstar Insurance Group. Renasant will continue a strategic relationship with Sunstar, allowing its banking customers to access the latter’s insurance and employee benefits products and services.
