BancorpSouth (BXS) in Tupelo, Miss., is making to most out of its return to bank acquisitions.
Just weeks after announcing its first bank deal in more than six years, the $13 billion-asset company said Wednesday that it would buy Central Community in Temple, Texas. BancorpSouth will pay about $211 million for Central Community, consisting of 7.25 million shares of common stock and $28.5 million in cash.
Central Community is the holding company for First State Bank in Austin, Texas. The $1.3 billion-asset company has 31 branches, including 11 in Austin. The company, which also has $556 million in loans and $1.1 billion in deposits, will divest its interest in $15 million in foreclosed property before its sale is completed.
"We are very excited about the opportunity," Dan Rollins, BancorpSouth's chief executive, said in a press release. "This merger will give us the opportunity to expand our footprint into the vibrant central Texas market."
Before joining BancorpSouth, Rollins was president and chief operating officer at Prosperity Bancshares (PB) in Houston. Prosperity had 20 branches and $667 million in deposits in Austin as of June 30, according to the Federal Deposit Insurance Corp.
Donald Grobowsky, Central Community's chairman, president, and CEO, will join BancorpSouth's board and serve as the company's area chairman for central Texas. All of First State's market presidents will continue to serve in their current roles.
BancorpSouth said it expects to complete the acquisition in the second quarter, with integration beginning in the third quarter.
Central Community was advised by Commerce Street Capital and Fenimore, Kay, Harrison & Ford. Bracewell & Guiliani was legal counsel to BancorpSouth.
BancorpSouth earlier this month agreed to buy Ouachita Bancshares in Monroe, La., for $112 million.