Houma, La.-based Synergy Bancshares Inc. agreed to acquire New Roads, La.-based Peoples Bancshares of Pointe Coupee Parish Inc. and subsidiary Peoples Bank and Trust Co. of Pointe Coupee Parish.
Per the arrangement, Peoples Bancshares will merge with and into Synergy Bancshares and Peoples Bank will merge with and into Synergy Bank. Both Synergy companies will be the surviving entities.
Financial terms of the transaction, which is expected to close in the third quarter, were not disclosed. The deal's closing is subject to customary conditions, including receipt of regulatory approvals and approval by shareholders of both banks.
The boards of both companies unanimously approved the transaction.
Synergy Bancshares is expected to have about $1.1 billion in total assets, $695.0 million in loans and $1.0 billion in deposits after the deal completes.
As of Dec. 31, 2022, Peoples Bank had approximately $337.0 million in assets, $256.7 million in loans and $273.1 million in deposits. It operates from its main office in New Roads, La., and three other branches across the greater Baton Rouge metropolitan area.
Once the deal closes, Synergy Bancshares will enter East Baton Rouge Parish, La., with two branches. The bank will be ranked No. 16 in the market with a 0.33% share of approximately $21.96 billion in total market deposits. It will also enter Pointe Coupee Parish, La., with two branches to be ranked first with a 34.23% share of approximately $649.43 million in total market deposits.
S&P Global Market Intelligence valuations for bank and thrift targets in the Southwest region between Feb. 23, 2022, and Feb. 23, 2023, averaged 165.02% of book and 176.90% of tangible book and had a median of 14.14x last-12-months earnings, on an aggregate basis.
Peoples Bank President and CEO Stephen David will continue to serve as an executive officer of the combined bank after the deal completes.
Fenimore Kay Harrison LLP was the legal adviser and CC Capital Advisors was the financial adviser to Synergy Bancshares on the transaction. Maynard Cooper & Gale PC was the legal adviser and American Planning Corp. was the financial adviser to Peoples Bancshares.
