Hammond, La.-based First Guaranty Bancshares Inc. agreed to acquire Marksville, La.-based Union Bancshares Inc. and unit Union Bank in an all-cash deal valued at about $43.0 million.
The purchase price is based on 1.5x Union Bancshares' estimated tangible book value at Sept. 30. The deal is expected to close in the fourth quarter.
S&P Global Market Intelligence calculates the deal is 152.8% of common equity and 152.8% of tangible common equity and is 12.7x earnings, on an aggregate basis. The deal value is 16.45% of assets, 20.57% of deposits and it has a tangible book premium to core deposits ratio of 8.78%.
S&P Global Market Intelligence valuations for bank and thrift targets in the Southwest region between July 31, 2018, and July 31 averaged 180.74% of book and 185.10% of tangible book and had a median of 14.86x last-12-months earnings, on an aggregate basis.
First Guaranty said the acquisition will provide "a profitable link" between its South Louisiana operations and its operations in North Louisiana and Texas.
The company will enter Avoyelles Parish, La., with six branches to be ranked first with a 31.13% share of approximately $620.18 million in total market deposits. It will also enter Rapides Parish, La., with two branches to be ranked tenth with a 1.26% share of approximately $2.31 billion in total market deposits.
First Guaranty Bancshares had total assets of $1.87 billion and Union Bancshares had total consolidated assets of $261.4 million, both as of June 30, according to S&P Global Market Intelligence data. First Guaranty had total loans of $1.3 billion and total deposits of $1.7 billion, while Union Bancshares had total loans of $185.8 million and total deposits of $209.0 million, according to a news release, citing data as of June 30.