By Dennis Seid
TUPELO – BancorpSouth Inc. is stepping out of the South – but not far – in announcing Tuesday that it was acquiring City Bancorp of Springfield, Mo.
The move also expands BancorpSouth’s footprint to eight states; just last summer, it opened its first location in Florida.
City Bancorp, with seven branches and seven ATMs in Springfield and St. Louis, has $847 million in assets through its banking subsidiary, The Signature Bank.
The deal will push BancorpSouth’s total assets to well over $12 billion. As of Sept. 30, the Tupelo-based financial holding company had assets of $11.9 billion, according to its third-quarter earnings report.
“We believe this merger is a win for our shareholders, a win for our team members, and certainly a win for our customers,” said The Signature Bank Chairman and CEO David Kunze.
City Bancorp’s board of directors unanimously approved the deal Monday. Under terms of the agreement BancorpSouth will pay about $170 million to City Bancorp’s shareholders, who will receive half of the amount in cash and the rest in BancorpSouth common shares. The deal must still meet shareholder and regulatory approval.
The acquisition of City Bancorp will add more than $600 million in deposits to BancorpSouth’s books.
“We are extremely pleased to be partnering with such a strong franchise, led by a veteran management team and supported by loyal, high-caliber employees,” said BancorpSouth Chairman and CEO Aubrey Patterson. “We believe BancorpSouth’s unique brand of decentralized decision making supported by our state-of-the-industry technology and product line will be welcomed by our new customers.”
The deal comes nearly a year after BancorpSouth completed its merger with American State Bank Corp. of Jonesboro, Ark. That transaction added about $358 million in assets and $292 million in deposits to BancorpSouth.
By Dennis Seid