First Bancshares entering New Orleans with FPB acquisition
First Bancshares in Hattiesburg, Miss., has agreed to buy FPB Financial in Hammond, La.
The $2.5 billion-asset First said in a press release Tuesday that it will pay $86.1 million in stock for the $382.7 million-asset parent of Florida Parishes Bank. The deal, which is expected to close in the first quarter, priced FPB at 190% of its tangible book value.
First will enter New Orleans with the acquisition. FPB has seven branches, $238.5 million in loans and $317.7 million in deposits.
“Florida Parishes Bank is an extremely well-run company with a long, rich history centered on client service and community involvement,” Hoppy Cole, First’s president and CEO, said in the release.
“Our companies share a common strategic vision of building a high-performing, client-focused community bank in the Gulf South,” Cole added. “This merger will further that objective by providing increased market share in Hammond and the greater New Orleans area.”
First said it expects the deal to be immediately accretive to its earnings per share and capital. The company said it expects to incur $7.8 million in merger-related expenses. It plans to cut about $4.3 million in annual noninterest expense.
Hovde Group and Alston & Bird advised First. Sandler O’Neill and Silver, Freedman, Taff & Tiernan advised FPB.