A group of well-known Baton Rouge investors has signed a deal to acquire Delta Bancshares of Louisiana Inc., the holding company of Commerce Community Bank’s Louisiana branch, with plans to support its growth and expansion into the Baton Rouge market.
While financial terms of the deal are not being disclosed, a cash purchase will be financed through a private stock offering that will commence soon. The local investor group also plans to inject additional capital into the bank, which currently operates locations in Oak Grove, Louisiana, and Eudora, Arkansas, and has approximately $65 million in assets, $55 million in deposits and $39 million in loans.
“One thing we’ve noticed in Baton Rouge is the banks tend to grow to a point where they don’t have many loans available for smaller businesses,” says Raising Cane’s Chicken Fingers treasurer and local CPA Robert Daigrepont Jr., who will serve as the expanded bank’s board chairman. “We’re looking to fill that gap and focus on making smaller loans to entrepreneurs and other businesses in town.”
In addition to the undisclosed acquisition price, Daigrepoint says the investors are looking to raise another $20 million of equity to purchase a Baton Rouge branch location.
Current Commerce Community Bank President and CEO Brian Ayers will remain with the bank and become market president of its existing footprint, while local banking executive Charles Chiasson—who, in 2007, formed South Louisiana Business Bank, which eventually sold to Investar Bank—will serve as president and CEO of the expanded bank.
Meanwhile, Scott Gaudin, who most recently served as Baton Rouge market president for The First, A National Banking Association, will become Commerce Community Bank’s new chief lending officer.
Members of the acquiring entity’s board also include Patrick Coogan, president of Champion Wealth Strategies and president and CEO of SportsBR; Flynn Foster, president and CEO of Guaranty Corporation; Barry Hugghins, West Baton Rouge Parish council member; and Ravi Patel, a hotelier.
The transaction, which is subject to regulatory and shareholder approval, is expected to close in the first quarter of 2021.
