Mississippi-based Renasant, the parent of Renasant Bank, has agreed to acquire local rival Metropolitan BancGroup, the parent of Metropolitan Bank, in an all-stock deal worth $190.2m.

Metropolitan comprises two offices in Nashville and two offices in Memphis, Tennessee, along with four offices in the Jackson, Mississippi MSA. As of 31 December 2016, the company managed about $1.2bn in total assets. Renasant has over 175 banking, mortgage, financial services and insurance offices in Mississippi, Tennessee, Alabama, Florida and Georgia and manages nearly $8.7bn in assets.

Under the arrangement, Metropolitan will merge with and into Renasant while Metropolitan stockholders will receive 0.6066 shares of Renasant common stock for each share of Metropolitan common stock.

Metropolitan president and CEO Curt Gabardi has been appointed as president and chief banking officer at Renasant Bank as part of the deal. In the new role, Gabardi will be responsible for commercial and mortgage banking and other financial services.

Renasant chairman and CEO Robin McGraw said: "This is an attractive opportunity to partner with a dynamic franchise with tremendous banking talent.

“Metropolitan is a high quality commercial and private bank with a strong credit culture and an attractive client base which enhances our current presence and market share in the key markets of Nashville and Memphis, Tennessee, and Jackson, Mississippi." 

The deal already secured the approval from the board of directors of both companies. It is expected to be completed in the third quarter of 2017, subject to regulatory and shareholder approvals.