BancorpSouth Buys FNB

BancorpSouth Buys FNB

By Marla Jones, Managing Editor •

SCOTTSBORO, Ala. — BancorpSouth Bank recently announced the merger agreement with FNS Bancshares, Inc., the parent company of FNB Bank.  

BancorpSouth Bank is headquartered in Tupelo, Mississippi, with approximately $24 billion in assets. BancorpSouth operates approximately 310 full-service branch locations as well as additional mortgage, insurance, and loan production offices in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee, and Texas, including an insurance location in Illinois.

FNS was founded in 1900 in Scottsboro, Alabama. The bank operates 17 full-service banking offices in Alabama, Georgia, and Tennessee. The merger will expand BancorpSouth’s presence in Jackson, DeKalb, and Marshall counties in Alabama and the Chattanooga, Tennessee-Georgia, and Nashville-Davidson-Murfreesboro-Franklin, Tennessee areas. As of September 30, 2020 (unaudited), FNS, reported total assets of $786.5 million, total loans of $492.5 million, and total deposits of $665.9 million.

Under the terms of the merger agreement, BancorpSouth will issue 2,975,000 shares of common stock, plus $18.0 million in cash, for all outstanding shares of FNS capital stock, subject to certain conditions and potential adjustments. Based upon the closing price of BancorpSouth common stock on January 12, 2021, the transaction is valued at approximately $108.4 million or $90.04 per share of FNS common stock.

“We are excited about this partnership and look forward to welcoming FNS’s teammates and customers to BancorpSouth,” stated BancorpSouth Chairman and CEO Dan Rollins. “FNS is a 120-year-old institution with deep ties in its local markets and is an ideal fit with our culture as a relationship-driven community bank. We’re looking forward to working with its experienced team of bankers to assist even more families and businesses with their banking needs.”

FNS Board Chairman Alan Gay said, “Our customers have come to expect exceptional service from our bank, so we’re pleased to have an opportunity to join forces with another more than a 100-year-old company that continues to operate as a true community bank. BancorpSouth’s resources and strengths, and its commitment to maintaining strong local leadership, will enable our bankers to continue and enhance service to our customers.”

Upon completion of the transaction, FNS CEO Steve Rownd will serve as a BancorpSouth division president.

The merger has been unanimously approved by the boards of directors of both companies. The merger is anticipated to close during the first half of 2021, pending the receipt of regulatory approval, the approval of FNS shareholders, and the satisfaction of other customary closing conditions.