Louisiana-based Business First Bancshares is moving to deepen its footprint in the northern part of the state, striking a deal to acquire the $752 million-asset Progressive Bancorp in Monroe for approximately $83 million in stock.
Progressive, which opened its doors in 1975, operates nine branches in Shreveport, Monroe, Bossier City and Winnsboro.
"We're adding talented bankers who are well-established in communities that are important to us," Business First CEO Jude Melville said Monday in a press release. "It deepens our Louisiana footprint, strengthens our deposit and liquidity profiles, and results in an economically strengthened shared franchise."
Business First, the holding company of b1Bank, was founded in 2006, and it is now the third-largest state-chartered bank in Louisiana.
But in Progressive's four-county footprint, the selling bank holds a 5% of the $13.3 billion deposit market, according to the Federal Deposit Insurance Corp., significantly larger than the $7.8 billion-asset Business First's 2.3% share.
"We've built Progressive on trusted relationships and a commitment to serving our communities with care and consistency," Progressive CEO George Cummings III said in the press release. "This partnership allows us to continue that mission with greater resources, broader capabilities and a shared belief in relationship banking."
Cummings' father, George Cummings Jr., founded Progressive and served as its first president.
Cummings will join the board of Business First after the transaction's expected close in the first quarter of 2026, the companies said. Progressive President David Hampton is expected to join Business First as vice chairman of its North Louisiana market. The merged company would have 18 branches in North Louisiana with $1.6 billion of both loans and deposits.
Business First cited Progressive's strong credit quality — net chargeoffs totaled just two basis points of total loans in the first quarter — as one of the key factors behind its motivation to do the deal. Business First also believes it can achieve significant cost savings, equal to 45% of Progressive's operating expenses, which totaled $21.6 million in 2024.
Business First plans to issue about 3.05 million shares to Progressive investors, who would own 9.3% of the merged company. Business First expects the deal to be 10% accretive to earnings in 2026. Tangible book value dilution is relatively modest at 3.4% with the earn-back less than three years.
Bank M&A activity appears to be quickening with 71 combinations reported so far this year, compared with 63 during the same period last year, Hovde analyst Brendan Nosal reported Monday in a research note.
While "still well shy of the tsunami many of us hoped for post-election … we're pleased to see activity levels up," Nosal wrote.
Business First is carving out a reputation as a frequent acquirer. Progressive would count as the company's third merger since 2022, when it
The deal for Progressive would push Business First's share of the state's $130 billion deposit market from 4.5% to 5%.
Business First's planned purchase of Progressive comes less than a week after another Baton Rouge-based bank, the $2.7 billion-asset Investar Holding Company, announced plans
