The deal is expected to allow BancorpSouth Bank to make an entry into Georgia and expand its presence Alabama in Tennessee
BancorpSouth Bank, a Mississippi-based bank, has agreed to acquire FNS Bancshares, the parent company of FNB Bank (FNS), for $108.4m.
FNS was established in 1900 and is headquartered in Scottsboro, Alabama. The bank operates 17 full-service banking offices across the states of Alabama, Georgia and Tennessee.
On a consolidated basis, the bank held $786.5m in total assets, $492.5m in total loans and $665.9m in total deposits, as of 30 September 2020.
Through the acquisition, BancorpSouth will be able to expand its presence in Jackson, DeKalb and Marshall counties in Alabama and the Chattanooga, Tennessee-Georgia and Nashville-Davidson-Murfreesboro-Franklin, Tennessee metropolitan statistical areas, along with entering the state of Georgia.
BancorpSouth Bank is a Tupelo, Mississippi headquartered bank. With nearly $24bn in assets, the bank operates 310 branches across the states of Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas and an insurance office in Illinois.
BancorpSouth chairman and CEO Dan Rollins said: “We are excited about this partnership and look forward to welcoming FNS’s teammates and customers to BancorpSouth.
“FNS is a 120-year-old institution with deep ties in its local markets and is an ideal fit with our culture as a relationship-driven community bank. We’re looking forward to working with its experienced team of bankers to assist even more families and businesses with their banking needs.”
The bank has agreed to acquire FNS by issuing 2,975,000 of common shares along with $18m in cash for all the outstanding shares of FNS.
FNS board chairman Alan Gay said: “Our customers have come to expect exceptional service from our bank, so we’re pleased to have an opportunity to join forces with another more than 100-year-old company that continues to operate as a true community bank.
“BancorpSouth’s resources and strengths, and its commitment to maintaining strong local leadership, will enable our bankers to continue and enhance service to our customers.”
Subject to regulatory approval, customary closing conditions and with approval from the FNS shareholders, the deal could be closed in the first half of this year.
After the deal is closed, FNS CEO Steve Rownd will be appointed as a BancorpSouth division president.
In 2019, BancorpSouth Bank had agreed to acquire Texas First State Bank in a deal valued between $38.8m to $46.5m.