Home Banking BancorpSouth to purchase FNS Bancshares in Alabama

BancorpSouth to purchase FNS Bancshares in Alabama

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BancorpSouth in Tupelo, Miss., has agreed to purchase FNS Bancshares in Scottsboro, Ala.

The $24 billion-asset BancorpSouth stated in a press launch Wednesday that it’ll pay $108.4 million in money and inventory for the $787 million-asset mother or father of FNB Financial institution. The deal, which is anticipated to shut within the first half of this yr, priced FNS Bancshares at 154% of its tangible e book worth.

FNS Bancshares, based in 1900, has 17 branches in Alabama, Georgia and Tennessee. It has $493 million of loans and $665.9 million of deposits.

“We’re enthusiastic about this partnership and sit up for welcoming FNS’s teammates and clients to BancorpSouth,” Dan Rollins, BancorpSouth’s chairman and CEO, stated within the launch. “FNS is a 120-year-old establishment with deep ties in its native markets and is a perfect match with our tradition as a relationship-driven group financial institution.”

Steve Rownd, CEO of FNS Bancshares, will be a part of BancorpSouth as a division president.

The deal is anticipated to be accretive to BancorpSouth’s earnings per share within the first full yr of operations. BancorpSouth stated it plans to chop about 30% of FNS Bancshares’ annual noninterest bills.

BancorpSouth stated it ought to take about two years to earn again the deal’s anticipated 0.5% dilution to its tangible e book worth.

FNS was suggested by Keefe, Bruyette & Woods and Fenimore, Kay, Harrison & Ford, whereas Janney Montgomery Scott rendered a equity opinion. BancorpSouth was suggested by Alston & Chook and Waller Lansden Dortch & Davis.

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