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Banking industry

Renasant Corporation Acquires The First Bancshares in $1.2 Billion All-Stock Transaction

Strategic Insights

— 2 min read

Renasant Corporation, a leading regional banking corporation, has announced the signing of a definitive merger agreement with The First Bancshares, Inc. to acquire the latter in an all-stock transaction valued at approximately $1.2 billion. The transaction, which has been approved by the respective boards of both companies, is expected to be completed in the first half of 2025, subject to customary closing conditions and regulatory approvals. The acquisition will result in the creation of a six-state Southeastern banking franchise, with combined assets of over $25 billion.

Key Takeaways:

  • Renasant Corporation will acquire The First Bancshares, Inc. in an all-stock transaction valued at approximately $1.2 billion, based on Renasant's closing stock price of $37.09 per share as of July 26, 2024.
  • The First Bancshares, Inc. has 111 branches across Mississippi, Louisiana, Alabama, Florida, and Georgia, and as of June 30, 2024, it had total assets of around $8.0 billion, total loans of $5.3 billion, and total deposits of $6.6 billion.
  • The acquisition will result in the creation of a six-state Southeastern banking franchise, with combined assets of over $25 billion, total loans of $18 billion, and total deposits of $21 billion.
  • Renasant has announced the adoption of a Community Benefit Plan, effective upon completion of the transaction, with a five-year plan to foster economic growth, access to financial services, and inclusion in the combined footprint, totaling $10.3 billion.
  • The First Bancshares, Inc. has operations in Mississippi, Louisiana, Alabama, Florida, and Georgia, and as of June 30, 2024, it had around $8.0 billion in total assets.
  • Renasant Corporation operates 185 banking, lending, mortgage, and wealth management offices in seven states, with assets of around $17.5 billion.

Statistics:

  • $1.2 billion: The value of the all-stock transaction, based on Renasant's closing stock price of $37.09 per share as of July 26, 2024.
  • $25 billion: The combined assets of Renasant and The First Bancshares, Inc. after the merger.
  • $18 billion: The combined total loans of Renasant and The First Bancshares, Inc. after the merger.
  • $21 billion: The combined total deposits of Renasant and The First Bancshares, Inc. after the merger.
  • $8.0 billion: The total assets of The First Bancshares, Inc. as of June 30, 2024.
  • $5.3 billion: The total loans of The First Bancshares, Inc. as of June 30, 2024.
  • $6.6 billion: The total deposits of The First Bancshares, Inc. as of June 30, 2024.
  • $10.3 billion: The total amount of the five-year Community Benefit Plan announced by Renasant.
  • 111: The number of branches of The First Bancshares, Inc. across Mississippi, Louisiana, Alabama, Florida, and Georgia.
  • 185: The number of banking, lending, mortgage, and wealth management offices of Renasant Corporation in seven states.

Sources:

  • M2 EQUITYBITES-August 1, 2024--Renasant acquires The First Bancshares (C)2024 M2 COMMUNICATIONS
  • Global Banking News - 01 August 2024
  • Renasant Corporation (NYSE: RNST)
  • The First Bancshares, Inc. (NYSE: FBMS)

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