An investor group in New Orleans has agreed to buy Mississippi River Bank in Belle Chasse, La.
River Road Financial said in a press release Monday that Mississippi River Bank will continue to operate from its existing branches in Belle Chasse and Port Sulphur, La. The $118 million-asset bank will also expand into the New Orleans area, beginning with a branch in Metairie, La.
The acquisition is expected to close in the second quarter. River Road did not disclose the price it will pay.
River Road said it plans to raise at least $50 million through the sale of newly issued common stock to accredited and institutional investors. The proceeds will fund the cash portion of the merger consideration and provide additional working capital to the bank to support anticipated growth and expansion plans.
Alton McRee, previously president and CEO of Fidelity Bank in Louisiana, will serve as CEO of the new holding company and the bank. Mike Bush, Mississippi River Bank's president and CEO, will remain the bank's president.
“With the enhanced capital from River Road, we will employ state-of-the-art technology, an expanded service area and an enhanced management and banking team to position the bank for growth,” McRee said in the release.
Lisa Works will continue to serve as the bank’s chief financial officer.
As part of the deal, the bank’s board will be reconstituted to include a number of experienced business leaders around New Orleans. Paul Aucoin, executive director of the Port of South Louisiana, will become chairman.
“We consider this a partnership rather than an acquisition,” Aucoin said in the release. Bush and Works “have a long-standing history of operating Mississippi River Bank as one of the most-profitable and top-performing banks in Louisiana, and have done so in a safe, sound and compliant manner. We are excited about the opportunity to partner with them as we seek to expand the bank’s success in the New Orleans MSA.”
River Road’s stock offering will begin this month.
Brean Capital will serve as the offering's sole placement agent. Fenimore, Kay, Harrison & Ford and American Planning Corp. advised River Road. Kantrow, Spaht, Weaver & Blitzer advised Mississippi River Bank.
