A Mississippi bank is acquiring banks in Louisiana and Florida for $33 million to expand its regional footprint, The Associated Press reports.
First Bancshares of Hattiesburg says it will acquire Iberville Bank of Plaquemine and Gulf Coast Community Bank of Pensacola, Florida. The moves will give the parent company of The First bank 48 offices and $1.6 billion in assets in Mississippi, Louisiana, Alabama and Florida. The acquisitions are the fourth and fifth for the bank in recent years.
“The combination of these institutions is a continuation of our strategic plan of creating a regional community bank in the Gulf South,” The First CEO M. Ray “Hoppy” Cole says in a statement. “The resulting company will offer additional products, services, locations and capacity which will allow us to better serve our existing clients and provide opportunities for growth in two very attractive markets, Pensacola, Florida, and Baton Rouge, Louisiana.”
First Bancshares will pay $31.1 million to A. Wilbert’s Sons Lumber and Shingle Co., the parent company of Iberville Bank, to acquire the bank, which has $259 million in assets and 10 branches in and around Baton Rouge.
First Bancshares says it expects to cut 40% of Iberville’s non-interest expenses, spending $6.6 million on the merger. Eight percent of the purchase price will be held back to account for possible loan losses related to August flooding in Louisiana.
