Ridgeland, Miss.-based BancPlus Corp. is acquiring in-state peer State Capital Corp. in a transaction valued at about $136.5 million in the aggregate, or $38.75 per State Capital share.
Pursuant to the deal, which is expected to close in the first quarter of 2020, State Capital shareholders will receive BancPlus common shares for each outstanding State Capital common share. Based on financial data as of June 30, the combined company will have approximately $4.2 billion in assets, deposits of $3.7 billion and gross loans of $3.1 billion, according to a news release.
S&P Global Market Intelligence calculates the deal value to be 122.6% of common equity, 162.8% of tangible common equity and 18.7x earnings, on an aggregate basis. The deal value is also 11.69% of assets and 13.65% of deposits, and the tangible book premium-to-core deposits ratio is 5.59%.
S&P Global Market Intelligence valuations for bank and thrift targets in the Southeast region between Sept. 19, 2018, and Sept. 19, 2019, averaged 157.93% of book and 167.92% of tangible book and had a median of 17.71x last-12-months earnings, on an aggregate basis.
Upon deal completion, Kirk Graves, CEO of State Capital unit State Bank & Trust Co., will join the senior executive management team of BancPlus unit BankPlus.
As of the end of June, BankPlus had $2.9 billion in total assets, $2.6 billion in deposits and $2.1 billion in gross loans. State Bank had about $1.2 billion in total assets, $1.0 billion in deposits and $900 million in gross loans, according to the news release.
According to S&P Global Market Intelligence data, BancPlus will expand in Mississippi by 20 branches to be ranked sixth with a 5.78% share of approximately $55.13 billion in total market deposits. Also, the company will enter Louisiana with 11 branches to be ranked No. 61 with a 0.2% share of approximately $106.47 billion in total market deposits and will enter Alabama with four branches to be ranked No. 61 with a 0.18% share of approximately $107.61 billion in total market deposits.
Keefe Bruyette & Woods Inc. was financial adviser, and Jones Walker LLP was legal counsel to BancPlus. Stephens Inc. was financial adviser, and Adams and Reese LLP was legal counsel to State Capital.
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