First Banks receives Fed approval to buy 19.9% of Southside in St. Louis.

ST. LOUIS - The Federal Reserves has approved the application of First Banks Inc. to acquire up to 19.99% of the voting shares of Southside Bancshares.

With $535 million of deposits, First Banks is the 10th-largest commercial banking organization in Missouri. Southside, also of St. Louis, is the 12th largest, with $507 million of deposits. First Banks, which already controls 4.99% of Southside, is to acquire the new shares as a passive investment.

To gain Fed approval, it agreed to exercise no controlling influence over the management or policies of Southside or its subsidiaries and to have no employee interlocks. First Banks also agreed not to solicit proxies about any matter presented to the shareholders of Southside.

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