Trustmark Corp. in Jackson, Miss., has agreed to buy Bay Bank & Trust Co. in Panama City, Fla.
Trustmark said late Wednesday that it will pay $22 million for the $247 million-asset Bay Bank, representing about 85% of the seller's tangible book value at Sept. 30. Trustmark is paying $10 million in cash with the rest to be paid in common stock. Bay Bank has seven branches in Bay County, Fla., serving Panama City, Panama City Beach and Lynn Haven.
"Bay Bank has a strong core deposit base, which is reflective of its commitment to customer service," said Gerard R. Host, Trustmark's president and CEO, in a press release. "Together, Bay Bank and Trustmark will have the second-largest deposit market share in Bay County."
The $9.6 billion-asset Trustmark said it expects to complete the acquisition in the first quarter of 2012 and that the deal should start adding to its earnings in 2013.