Casey Bancorp and its wholly-owned subsidiary, Grand Bank of Texas, signed a definitive merger agreement to merge with and into BancorpSouth Bank.
Grand Bank operates four full-service banking offices in the cities of Dallas, Grand Prairie, Horseshoe Bay and Marble Falls, all in Texas. BancorpSouth Bank operates 59 full-service banking offices in Texas, including two in the Dallas – Fort Worth metroplex and 32 in Central Texas.
Under the terms of the merger agreement, BancorpSouth Bank will issue 1,275,000 shares of BancorpSouth common stock, plus $11 million in cash, for all outstanding shares of Casey Bancorp capital stock, subject to certain conditions and potential adjustments.
The terms of the agreement provide for a collar with respect to the total deal value ranging from $51.75 million to $56.75 million. If necessary, the share count will be adjusted downward or the cash consideration adjusted upward to accommodate the respective boundaries of the collar.
“The team at Grand Bank is widely respected for its expertise and abilities, and we’re confident that they’ll make a great addition to the BancorpSouth family,” said Dan Rollins, chairman and CEO of BancorpSouth. “This merger will give us an opportunity to expand our presence in the thriving Dallas-Fort Worth market, as well as position us for greater success in the Texas Hill Country.”
Michael T. Casey, chairman of the board and CEO of Grand Bank, added, “BancorpSouth shares our values of providing exceptional service to customers and forming partnerships within our communities. This is an exciting time for our bank, and I’m looking forward to the exciting benefits this merger will have for all of our stakeholders.”
Upon completion of the transaction, Casey will serve as BancorpSouth’s Dallas area chairman.
The merger was unanimously approved by the boards of directors of both companies. The closing of the transaction is subject to certain conditions, including approval by Casey Bancorp’s shareholders and of customary regulatory approvals. The transaction is anticipated to close during the first half of 2019.
Grand Bank was advised in this transaction by Commerce Street Capital as financial advisor and Hunton Andrews Kurth as legal counsel. Alston & Bird acted as legal counsel to BancorpSouth.
Headquartered in Tupelo, MS, BancorpSouth Bank has approximately $18 billion in assets and operates approximately 285 full-service branch locations as well as additional mortgage, insurance and loan production offices in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.
