(Reuters) – Regional lender Renasant Corp has agreed to buy rival The First Bancshares in an all-stock deal valued at $1.2 billion, the Mississippi-based banks said on Monday.
The deal underscores the growing consolidation in the U.S. regional banking industry and will create a combined six-state Southeastern regional lender with about $25 billion in total assets.
Last week, regional bank WesBanco struck a $959 million all-stock deal to buy community bank Premier Financial.
First Bancshares shareholders will receive one share of Renasant for each held, valuing the lender at $37.09 per share, based on Renasant’s Friday close.
The offer represents a 20.4% premium to First Bancshares’ Friday close.
First Bancshares shares rose 5.7% after the bell, while Renasant shares fell 1%.
Hattiesburg, Mississippi-based First Bancshares had $8 billion in total assets as of June 30.
Separately, Renasant also priced a public offering of roughly 6.3 million shares at $32 per share to raise $200 million.
First Bancshares is liable to pay a termination fee of $40 million to Renasant if the merger falls through under certain circumstances.
The deal is expected to close in the first half of 2025.
Stephens is the financial adviser to Renasant while Keefe, Bruyette & Woods is advising First Bancshares.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Sriraj Kalluvila)
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