Union, First Interstate, Simmons First: Fall's biggest M&A deals

November 18, 2018 9:18 PM

Across the country, community banks gobbled up local competition in an effort to reach new customers.

Overall, 34 bank acquisitions with an aggregate disclosed value of $3.3 billion have been announced since Sept. 1, based on data compiled by S&P Global Market Intelligence.

Leading all deals struck last month was Union Bankshares' $600 million agreement to buy Access National. The acquisition will strengthen Union’s presence in northern Virginia.

Another deal saw Montana-based First Interstate widening it presence in Idaho, after agreeing to buy Idaho Independent and Community 1st Bank for $200 million.

Here's a wrap-up of recent notable acquisition deals:

Union to gain scale around Washington with $600M acquisition

Union Bankshares in Richmond, Va., in early October agreed to buy Access National in Reston, Va.

The $13.1 billion-asset Union said in a press release it will pay $610 million in stock for the $2.9 billion-asset Access. The deal, which is expected to close in the first quarter, priced Access National at 243% of its tangible book value.

The acquisition would strengthen Union’s northern Virginia presence. Access National has 15 branches, $2 billion in loans and $2.1 billion in deposits.

“We expect that our combined footprint will bring additional convenience to our customers and position us as an even stronger competitor against the large national banks, super regional banks and smaller community banks,” John Asbury (pictured above) Union’s president and CEO, said in the release.

Kevin Riley, president and CEO of First Interstate BancSystem

First Interstate bulks up in Idaho with two bank acquisitions

First Interstate BancSystem in Billings, Mont., has agreed to buy two banks in Idaho.

The $12.2 billion-asset company said that it will buy Idaho Independent Bank in Coeur d’Alene and Community 1st Bank in Post Falls. The deals should close in the first half of 2019.

First Interstate said it will pay $181.3 million for Idaho Independent and $21.5 million for Community 1st. “We are excited to announce these partnerships that build upon our growing commitment to Idaho,” Kevin Riley, First Interstate’s president and CEO (pictured above), said in the release.

Idaho Independent has 11 branches, $725 million in assets, $362 million in loans and $610 million in deposits. Community 1st has three branches, $130 million in assets, $78 million in loans and $116 million in deposits.

Acquisition to give Simmons First big boost in St. Louis

Simmons First National in Pine Bluff, Ark., has agreed to buy Reliance Bancshares in Frontenac, Mo.

The $16.3 billion-asset Simmons said that it will pay about $170 million in cash and stock for the $1.5 billion-asset Reliance. The deal, which is expected to close in the second quarter, prices Reliance at 187% of its tangible common equity.

The acquisition marks a major expansion for Simmons in St. Louis, where it already has commercial lending operations. Reliance has 22 branches, $1.1 billion in loans and $1.2 billion in deposits.

Park in Ohio doubles down in the Carolinas with latest acquisition

Park National in Newark, Ohio, has agreed to buy CAB Financial in Spartanburg, S.C.

The $7.5 billion-asset Park said that it will pay $141.8 million in cash and stock for the parent of the $730 million-asset Carolina Alliance Bank. The deal, which is expected to close in the first half of 2019, priced CAB at 186% of its tangible book value.

CAB has seven branches in North Carolina and South Carolina and a loan production office in Charlotte, N.C. With the deal, Park is looking to build on its July acquisition of NewDominion Bank in Charlotte.

Ironwork galleries on the Streets of French Quarter decorated for Mardi Gras in New Orleans, Louisiana

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First Bancshares entering New Orleans with FPB acquisition

First Bancshares in Hattiesburg, Miss., has agreed to buy FPB Financial in Hammond, La.

The $2.5 billion-asset First said in a press release that it will pay $86.1 million in stock for the $382.7 million-asset parent of Florida Parishes Bank. The deal, which is expected to close in the first quarter, priced FPB at 190% of its tangible book value.

First will enter New Orleans with the acquisition. FPB has seven branches, $238.5 million in loans and $317.7 million in deposits.

Welcome to Kentucky road sign for stock art.

Welcome to Kentucky road sign at the state border

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Peoples in Ohio to enter Ky. with First Prestonsburg acquisition

Peoples Bancorp in Marietta, Ohio, has agreed to buy First Prestonsburg Bancshares in Kentucky.

The $4 billion-asset Peoples said in a press release it will pay $45.4 million for the $310 million-asset First Prestonsburg, which includes a special dividend to the seller’s shareholders.

The deal, which is expected to close in the second quarter, priced First Prestonsburg at 161% of its tangible book value. Peoples will enter Kentucky when the deal is completed.

First Prestonsburg has eight branches, $139 million in loans and $244 million in deposits.

Orrstown in Pa. to expand in Baltimore with Hamilton acquisition

Orrstown Financial Services in Shippensburg, Pa., has agreed to buy Hamilton Bancorp in Towson, Md.

The $1.9 billion-asset Orrstown said that it will pay $58.5 million in cash and stock for the $523 million-asset Hamilton.

The deal, which is expected to close in the second quarter, priced Hamilton at 131% of its tangible book value.

Hamilton has seven branches around Baltimore.

The Chicago skyline.

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Byline to enter new Chicago markets with Oak Park acquisition

Byline Bancorp in Chicago has agreed to buy Oak Park River Forest Bankshares in Oak Park, Ill.

The $4.8 billion-asset Byline said that it will pay $42 million in cash and stock for the $325 million-asset Oak Park. The deal is expected to close in the second quarter.

The acquisition allows Byline to enter the Oak Park and River Forest markets around Chicago while adding nearly $300 million in low-cost core deposits. Oak Park has three branches and $254 million in loans.

Investar in La. to enter Houston with latest acquisition

Investar Holding in Baton Rouge, La., has agreed to buy Mainland Bank in Texas City.

The $1.7 billion-asset Investar said that it will pay $19.9 million in stock for the $131 million-asset Mainland. The deal is expected to close in the first quarter.

The acquisition allows Investar to enter the Houston market. Mainland has three branches, $88 million in loans and $113 million in deposits.

“Expansion into Texas enhances our regional footprint and provides the opportunity for additional mergers and acquisitions in Texas markets,” John D’Angelo (pictured above), Investar’s president and CEO, said in the release.

American National deepens Va. roots with latest acquisition

American National Bankshares in Danville, Va., has agreed to buy HomeTown Bankshares in Roanoke, Va.

The $1.8 billion-asset American National said in a press release that it will pay $95.6 million in stock for the $558 million-asset HomeTown.

The acquisition, which is expected to close in the first quarter, priced HomeTown at 182% of its tangible book value.

American National said Roanoke will serve as its Virginia banking headquarters and the center for its corporate credit functions. The company will keep its North Carolina banking headquarters in Greensboro. Danville will remain its corporate headquarters.

Susan Still, HomeTown's president and CEO, will serve as American National's president of Virginia banking until she retires at the end of 2019. Three HomeTown directors, including Still, will join American National's board.

C&N expands closer to Philadelphia with Monument acquisition

Citizens & Northern in Wellsboro, Pa., has agreed to buy Monument Bancorp in Doylestown, Pa.

The $1.3 billion-asset C&N said that it will pay about $43 million in cash and stock for the $348 million-asset Monument. The deal is expected to close in the second quarter.

Monument has two branches and a loan production office.

Fee income spurs nonbank acquisition for Heartland in Ohio

Heartland BancCorp in Whitehall, Ohio, has agreed to buy TransCounty Title Agency.

TransCounty provides commercial and residential title and escrow services. The firm, which also offers title searches, has five locations around Columbus, Ohio. The price of the deal was not disclosed.

Generating noninterest income is “a significant part of our strategic plan, and this partnership will make for a good return for our shareholders,” Scott McComb, the $1 billion-asset Heartland's chairman, president and CEO, said in a press release.