Renasant to acquire Mississippi bank for $1.2 billion

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Renasant Corp. in Tupelo, Mississippi, said Monday it struck a deal to acquire in-state peer The First Bancshares in Hattiesburg.

The $17 billion-asset Renasant said it would pay $1.2 billion in stock for the $8 billion-asset The First, which has $6.6 billion of deposits, $5.3 billion of loans and 111 branches across its home state, Louisiana, Alabama, Florida and Georgia.

"As two of the largest banks headquartered in Mississippi, each with a footprint across the Southeast, both Renasant and The First have grown to know and respect each other's operating philosophy, dedication to providing best-in-class customer service and commitment to the communities in which we operate," Renasant CEO Mitchell Waycaster said in a press release announcing the deal.

The combination, expected to close in the first half of 2025, would create a six-state Southeastern banking franchise with approximately $25 billion of assets, $18 billion of loans and $21 billion of deposits.

The transaction priced The First at 184% of its tangible book value.

"As with Renasant, The First has expanded into some of the most dynamic, fastest growing markets in the Southeast," Waycaster said. "Together, we create a more valuable company with the meaningful scale needed to compete in today's operating environment."

Hoppy Cole, The First's president and CEO, would become a senior executive vice president at the combined bank. He and three other directors from The First would join Renasant's board.

Renasant plans to trim about 30% of The First's annual noninterest expenses. It expects to earn back an estimated 9% dilution to its tangible book value in about three years. 

Renasant  projected $75 million in merger-related expenses. Excluding those costs, it expects the deal to prove immediately accretive to Renasant's earnings per share.