American Gateway shareholders have approved the bank’s previously announced merger with Business First Bank, clearing the final hurdle for a deal that will create what is expected to be the largest locally headquartered community bank.
The combined entity will operate under the Business First brand and include 16 branch locations, more than $1 billion in assets, $867 million in deposits, $711 million in loans and $100 million in equity.
Business First President and CEO Jude Melville says the approval by American Gateway shareholders on Tuesday was the final step needed for the merger, which was announced in July last year. Federal and state banking regulators earlier approved the merger.
“We are pleased to obtain the approvals of our regulatory partners and the shareholders of American Gateway Bank,” Melville says. “This is a materially significant step for both companies. In an economic and regulatory environment that is increasingly challenging for community banks, we believe both of our institutions will be stronger taking on the future together—more assets under management, more geographic and industrial diversification, more opportunities for employees to grow and develop, and more earnings to invest for growth.”
The merger brings together one of the youngest banking institutions in the area with one of the oldest. It also fuses a leading business banking institution with one that has a long-established personal banking portfolio.
Though it’s been just under nine years since Business First was founded by a group of businessmen including former Gov. Buddy Roemer—who now serves as chairman emeritus—the bank has grown rapidly and has already achieved a statewide reach. However, Business First has just one Baton Rouge location. Meanwhile, at 106 years old, American Gateway has a long local history and nearly a dozen branches spread across the Capital Region.
Though bank officials had initially hoped to close the deal in the last quarter of 2014, the process of getting regulatory and American Gateway shareholder approval had taken longer than expected.
