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November 14, 2018

BancorpSouth Bank to acquire two banks in Alabama and Texas

Mississippi-based BancorpSouth Bank has signed definitive agreements to acquire Casey Bancorp in Texas and Merchants Trust in Alabama in cash and stock transactions.

Following the completion of the merger, Casey Bancorp and its wholly-owned subsidiary Grand Bank of Texas as well as Merchants Trust and its unit Merchants Bank, will merge into BancorpSouth Bank.

The transaction with Casey Bancorp is estimated to value between $51.75m and $56.75m, while the Merchants Trust deal carry a value ranging from $37.5m to $43m.

Rationale behind the bank acquisitions

Grand Bank operates four full-service banking offices in the Texas.

Overall, it had total assets of $353m, total loans of $249m and total deposits of $323m as of 30 September 2018.

The acquisition is expected to strengthen BancorpSouth Bank presence in the state of Texas where it operates 59 full-service banking offices.

BancorpSouth Bank chairman and CEO Dan Rollins said: “The team at Grand Bank is widely respected for its expertise and abilities, and we’re confident that they’ll make a great addition to the BancorpSouth family.

“This merger will give us an opportunity to expand our presence in the thriving Dallas-Fort Worth market, as well as position us for greater success in the Texas Hill Country.”

On the other hand, Merchants had six full-service banking offices in Alabama. The merger will enable BancorpSouth to enter new markets in selected counties of the state.

Merchants had total assets of $221m, total loans of $152m and total deposits of $195m as of 30 September 2018.

Both the transactions are expected to close in the first half of 2019, subject to customary closing conditions and regulatory approvals.

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