Banks offer businesses and individuals alike the opportunity to borrow funds to invest in a business, to buy a home, save for the future, investment options and more. Most people routinely use banks for their day-to-day activities. Thus, when banks are acquired or merge together into one, customers may wonder how the action may affect them, their assets, bank services and the like.

Louisiana residents familiar with First Bancshares Inc., which is headquartered in Mississippi but with several locations in Louisiana, may find it interesting to learn that the bank recently announced that it would acquire BCB Holding Co. Inc. for a little over $6.5 million in cash and stock. Pending regulatory and shareholder approval, the merger deal is anticipated to be finalized sometime in the second quarter of this year. If approved, First Bank will be have about a billion in total assets, including a little over $835 million in total deposits, and about $624 million in loans.

Furthermore, new bank locations will be added, raising First Bank’s total locations to about 30. In addition to this recent merger, last year First Bancshares acquired the banking unit of First Baldwin Bancshares. The hope is that this latest merger will give the bank more resources to better serve its customer base, provide innovative banking solutions and meet its various customers’ financial goals.

Generally, anticipated multi-million dollar merger and acquisition deals require regulatory approval, and detailed drafting of agreements to ensure that both sides gets the most out of the transaction. During such business transactions and merger negotiations, it is important to get the right information in order to ensure that a fair and equitable decision is being made.

Source: Birmingham Business Journal, “Mississippi bank to acquire second Alabama bank,” Antrenise Cole, March 7, 2014