TUPELO – Renasant Corp. will acquire a Hattiesburg-based bank in an all-stock transaction valued at $1.2 billion, the bank’s largest-ever merger.
Renasant and The First Bancshares Inc. in a joint statement said the two financial institutions had entered into a definitive agreement and plan of merger with the boards of directors of both companies unanimously approving the deal. Completion of the transaction — which is expected to close in the first half of 2025 — is subject to customary closing conditions, including the receipt of required regulatory approvals and the approval of Renasant and The First shareholders.
It is Renasant’s first merger since 2018, when it completed a $452 million acquisition of Georgia-based Brand Group. That stood as Renasant’s largest merger until Monday’s announcement.
According to the terms of the merger agreement, shareholders of The First will receive 1.00 share of Renasant common stock for each share of The First common stock. All options of The First will be cashed out at their in-the-money value at closing. Based on Renasant’s closing stock price of $37.09 per share as of July 26, 2024, that puts the value of the merger at $1.2 billion.
“As two of the largest banks headquartered in Mississippi, each with a footprint across the Southeast, both Renasant and The First have grown to know and respect each other’s operating philosophy, dedication to providing best-in-class customer service and commitment to the communities in which we operate,” said Renasant CEO Mitch Waycaster. “As with Renasant, The First has expanded into some of the most dynamic, fastest growing markets in the Southeast. Together, we create a more valuable company with the meaningful scale needed to compete in today’s operating environment.”
The First operates 111 branches across Mississippi, Louisiana, Alabama, Florida and Georgia. As of June 30, 2024, The First had approximately $8 billion in total assets, $5.3 billion in total loans and $6.6 billion in total deposits. The merger will create a six-state Southeastern banking franchise with approximately $25 billion in total assets, $18 billion in total loans and $21 billion in total deposits, based on financial data as of June 30, 2024.
“This merger will greatly benefit our current and future customers by expanding our locations, services and products,” said Renasant President Kevin Chapman. “The First is a strong community bank with employees who are deeply invested in the markets they serve. We look forward to enhancing our ability to serve the needs of our customers and communities through this merger.”
M. Ray “Hoppy” Cole, president and CEO of The First, will become a Senior Executive Vice President and join both the Renasant and Renasant Bank boards of directors. Three additional independent directors of The First will be appointed to both the Renasant and Renasant Bank boards of directors, and two additional independent directors of The First will be appointed to the Renasant Bank board of directors.
“At The First, we are proud of the team we have assembled and the company we have built together,” Cole said in a statement. “The First has always operated with a community-first mindset, building strong, trust-based relationships with our clients and the markets we serve. Going forward, we are excited for our customers, bankers and shareholders to experience our next chapter as we join Renasant and form a leading Southeast regional bank with the scale and capabilities of a larger bank while maintaining the community bank touch our customers have come to expect. Because of our great respect for the culture Renasant has established and the like-minded manner in which they operate, we believe this merger will create significant benefits for all stakeholders.”
Community benefit plan
In connection with the announcement of the Merger, Renasant announced its adoption of a Community Benefit Plan. Under this plan, which is effective upon completion of the merger, Renasant is committed to an $10.3 billion, five-year plan to foster economic growth, access to financial services and inclusion in Renasant’s and The First’s combined footprint.
More information about Renasant’s Community Benefit Plan can be found at www.renasant.com under the News & Market Data tab.
Public offering
Renasant also announced the pricing of its public offering of 6,250,000 shares of its common stock, at a price to the public of $32 per share, for an aggregate offering amount of $200 million. Renasant also has granted the underwriters a 30-day option to purchase up to an additional 937,500 shares of common stock at the public offering price, less underwriting discounts.
Renasant expects that the net proceeds of the offering will be approximately $190 million, assuming no exercise of the underwriters’ option to purchase additional shares, after deducting underwriting discounts and before deducting transaction expenses. Renasant intends to use the net proceeds general corporate purposes to support its continued growth, including investments in Renasant Bank and future strategic acquisitions.
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