BankFirst will operate the combined company that will have 31 offices in Mississippi and Alabama, with assets worth more than $1.6bn
BankFirst Capital, the parent organisation of BankFirst Financial Services, has agreed to acquire Traders & Farmers Bancshares (T&F), the parent organisation of Traders & Farmers Bank.
Founded in 1906, Traders & Farmers Bank Traders & Farmers Bank is a $366m financial institution, with headquarters in Haleyville, Alabama. It has additional branch offices in Addison, Arley, Bear Creek, Curry, Double Springs and Lynn, Alabama.
Founded in 1888, BankFirst Financial Services is a $1.3bn financial institution, with headquarters in Columbus.
The firm operates from branch offices in Flowood, Hickory, Jackson, Lake, Louin, Macon, Madison, Newton, Starkville and West Point, and Aliceville, Carrollton, Gordo, Northport and Tuscaloosa, Alabama and a loan production office in Hattiesburg, Mississippi.
T&F chief executive officer Rickey McCreless said: “We are excited to partner with BankFirst because they share our core values of customer service and community involvement.
“Together, with an expanded offering of products, services and resources, we will be better able to serve the needs of our customers and our communities. We also believe that this is an excellent opportunity for our shareholders and employees.”
BankFirst will pay purchase price in the form of cash and shares
Under the terms of the merger agreement, BankFirst will pay the purchase price to the T&F shareholders, in the form of cash and shares of BankFirst common stock valued at approximately $49m, subject to adjustment.
In addition, the bank is also expected to offer a special cash dividend, amounting an average of $33m to the T&F shareholders, as part of the transaction.
Once the transaction is closed, the combined company, which will operate under the BankFirst brand, will have 31 offices in Mississippi and Alabama, with assets of more than $1.6bn.
The financial closure of the transaction is expected in the second quarter of 2020, subject to fulfilment of customary closing conditions, including approval from the shareholders of T&F and bank regulatory authorities.
BankFirst president and chief executive officer Moak Griffin said: “The acquisition of T&F will be another milestone in the implementation of our strategic plan to serve our customers and communities and increase shareholder value.
“In addition, we believe this merger furthers our vision of partnering with other community banks that have strong core deposit funding and a long tradition of superior community and customer service. Together, the combined company will have over 246 years of community banking experience in Mississippi and Alabama.
“We expect this merger to enhance our ability to continue investing in our products and services, ensuring that we remain competitive on all fronts as the banking industry continues to change and evolve.”