First NBC Bank Holding in New Orleans has agreed to buy State Investors Bancorp in New Orleans.
The $3.6 billion-asset First NBC will pay $51 million, or $21.25 a share, in cash for the $269 million-asset State Investors. The deal is expected to close in the second quarter.
"This transaction enables us to further expand our presence within the New Orleans metropolitan area, our primary market," Ashton Ryan Jr., First NBC's president and chief executive, said in a press release Tuesday. "We also believe that the significant cost savings expected to result from the merger will enhance shareholder value."
First NBC said it expects to cut 55% of State Investors' annual operating expenses, though there will be about $3.4 million in merger-related expenses. First NBC also said it expects the deal to be 2.3% accretive to its 2015 earnings per share, and 4.4% accretive the next year. Tangible book value dilution of 2.1% should be earned back in three years, the company said.
First NBC was advised by Keefe Bruyette & Woods and Fenimore, Kay, Harrison & Ford. State Investors was advised by Sterne Agee & Leach and Silver, Freedman, Taff & Tiernan.
First NBC also said it plans to change its stock symbol from "NBCB" to "FNBC" on Jan. 1.