Baton Rouge-based Business First Bancshares Inc. announced this morning plans to acquire Richland State Bancorp and its subsidiary, Richland State Bank, making it the fourth largest Louisiana headquartered bank with total assets of approximately $2 billion.
Meanwhile, the company says it has also commenced an underwritten public offering of approximately 900,000 shares of its common stock. Business First went public in April, listing its stock on the NASDAQ under the ticker symbol BFST.
The bank says it will grant underwriters a 30-day option to purchase up to 135,000 additional shares of its stock. Stephens Inc. is serving as the lead book-running manager for the offering. Raymond James & Associates Inc. is serving as lead manager, and Hovde Group LLC is serving as co-manager.
“Our team remains focused on our goal of becoming the region’s most influential business-focused community bank,” says Business First President and CEO Jude Melville in a statement. “This merger, in combination with our recent MBL Bank partnership in Minden, Louisiana, expands our presence along the Interstate 20 corridor and provides diversification and balance to our business mix.”
Under the acquisition terms—which have been approved by the boards of each company—Richland State’s shareholders will receive cash consideration of approximately $10.6 million and 1,679,608 shares in Business First Bancshares stock, subject to certain conditions and potential adjustments. Based on Business First is trading at $23.72 as of this morning, the deal is worth approximately $50.8 million. Subject to closing conditions, shareholder and regulatory approvals, the deal is expected to close in the fourth quarter. When it’s done, Richland State President and CEO Jerome Vascocu will join Business First’s board of directors and serve as chairman of it’s Northeast Louisiana Region.
Richland State Bank was founded in 1902 in Rayville, Louisiana. As of March 31, the bank reported $305 million in total assets, $188.7 million in total loans, $270 million in total deposits and $32.5 million in shareholders’ equity.
Business First Bank has undergone significant expansion in recent years. The bank currently operates 19 offices, including 16 banking centers, two loan production offices and one wealth solutions office in markets across Louisiana and Texas.
Business Report Publisher Rolfe McCollister is a co-founder and board member of Business First.
