Regions Financial Corp. signed definitive agreements to buy LCB Corp. of Fayetteville, Tenn., and North Alabama Bank of Hazel Green, Ala., for $60 million.
In a press release, Regions said it will convert each LCB Corp. common share into 15.789 Regions Financial common shares. The company will convert each North Alabama Bank common share into 3.947 Regions Financial common shares.
The company plans to account for the transactions as purchases and expects them to be tax-free reorganizations for federal income tax purposes.
Regions plans to repurchase the 1.6 million shares that would be issued for the transactions on the open market or in privately negotiated transactions. Regions' stock closed Friday at $38.15625.
Each acquisition is conditional upon the closing of the other. The bank holding company expects to close the transactions in the fourth quarter. LCB Corp. has assets of $175 million. North Alabama Bank has assets of $55 million.