Both the companies have reached a definitive agreement to this effect.
As per the agreed terms, KeyWorth with $389m worth of total assets will merge with and into Renasant Bank.
KeyWorth shareholders will receive 0.4494 shares of Renasant common stock for each share of KeyWorth common stock.
The merger will expand Renasant’s existing presence in the northern suburbs of Atlanta, Georgia. This will complement Renasant’s recent acquisition of Heritage Financial Group.
This deal will be immediately accretive to Renasant’s estimated earnings.
Commenting on the merger, Renasant chairman and CEO E. Robinson McGraw said: "This is an attractive opportunity for us to acquire a community banking franchise which focuses on the greater Atlanta market area. KeyWorth Bank is a high quality commercial bank, with a strong credit culture and an attractive customer base.
"We believe this combination will be additive to Renasant’s growing Georgia franchise and will provide us with additional scale and commercial banking expertise in the Atlanta market."
Subject to KeyWorth shareholder approval, regulatory approval and other conditions set forth in the merger agreement, the transaction is expected to be completed in the first quarter of 2016.
KeyWorth CEO James F. Pope said: "This is a logical combination with one of the most attractive banks in the Southeast. Our customers will become part of a multi-billion dollar banking franchise with immediate access to an expanded array of products and services.
"KeyWorth’s shareholders will exchange their shares for Renasant common stock which is listed on NASDAQ and which we believe is well-positioned for continued growth."
