First Guaranty Bank, Hammond, La., said it plans to buy 13 branches in Louisiana and $299 million of deposits from Chicago-based Bank One Corp. for an undisclosed sum.
To pay for the branches, which also come with some loans and fixed assets, First Guaranty plans to issue $30 million of preferred stock.
First Guaranty, which has $252 million of assets and $234 million of deposits, holds 30% of the deposit market share in Tangipahoa Parish in southeast Louisiana.
The transaction, expected to close in October, would more than triple the bank's branch network, to 19, and expand its presence into north Louisiana.
"We are committed to further expanding our franchise to make First Guaranty a real player in Louisiana," said Marshall T. Reynolds, chairman.
In May, First Guaranty terminated its deal to be bought by Hibernia Corp. of New Orleans for $78 million, asserting that continued independence would yield the most benefits to its stockholders and customers.