BancPlus to acquire State Capital Corp. to enter Louisiana and Alabama markets

BancPlus acquisition of State Capital Corp. : BancPlus and State Capital Corp. have agreed to merge to create a premier regional bank in the US in an all-stock deal worth around $136.5 million, as per the latest banking acquisition news.

While BancPlus is the parent company of BankPlus, State Capital Corp. is the holding company of State Bank & Trust. Both the bank holding companies are based in Mississippi.

BancPlus acquisition of State Capital Corp. will allow the former to enter the Louisiana and Alabama markets, as per the latest US banking industry news.

BancPlus acquisition of State Capital Corp. | Bank acquisition news. Image courtesy of Business Wire, Inc.

Terms of BancPlus acquisition of State Capital Corp.

As per the terms of the deal, State Capital Corp. shareholders will receive shares of BancPlus’ common stock for each outstanding share of their common stock. The transaction values each share of State Capital Corp. at $38.75.

Commenting on BancPlus acquisition of State Capital Corp., William A Ray – president and CEO of BankPlus said: “This merger not only represents two of Mississippi’s oldest banks coming together with shared values and strong roots in the communities we serve, it also represents an even stronger bank going forward, focused on the future and exceeding the expectations of our customers.”

State Bank & Trust, which was founded in 1898, offers commercial and consumer banking services. Headquartered in Greenwood, State Bank & Trust caters to small and medium-sized businesses, professional companies, individuals, civic groups and other organizations.

Operating 34 branches throughout Mississippi, Louisiana and Alabama, State Bank & Trust had $1.2 billion in total assets, $1 billion worth deposits and $0.9 billion in gross loans as on 30 June 2019.

BankPlus, which was founded in 1909 is headquartered in Ridgeland and was chartered in Belzoni. Currently, the Mississippi bank operates across 55 locations in the state.

The BancPlus subsidiary provides full-service commercial banking, wealth management services, and mortgage lending apart from a variety of internet banking services. BankPlus had $2.9 billion in total assets, $2.6 billion worth deposits, and $2.1 billion in gross loans, as of 30 June 2019.

The combined bank holding company following the BancPlus, State Capital Corp. merger, will have nearly $4.2 billion in assets, deposits worth $3.7 billion, and gross loans of $3.1 billion, based on financial data as of 30 June 2019.

Kirk A Graves – CEO of State Bank & Trust, commenting on BancPlus acquisition of State Capital Corp., said: “We are excited to join a well-regarded institution with strong community banking roots in Mississippi.

“BankPlus is one of the fastest growing banks in Mississippi, and we look forward to joining a team so dedicated to its customers and employees.”

For BancPlus, Keefe, Bruyette & Woods was the financial advisor, while Jones Walker served as its legal counsel. On the other hand, State Capital Corp. had Stephens as its financial advisor, while Adams and Reese was the legal counsel.

BancPlus acquisition of State Capital Corp. is expected to close in the first quarter of 2020, subject to the latter’s shareholders approval and regulatory approvals.

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