BancorpSouth Bank recently announced the signing of a definitive merger agreement with National United Bancshares, Inc., the parent company of National United, (collectively referred to as “National United”), pursuant to which National United will be merged with and into BancorpSouth.
National United, which was founded in 1889 in Gatesville, Texas, operates six full-service banking offices in the Killeen-Temple, Texas; Waco, Texas; and Austin-Round Rock-Georgetown, Texas metropolitan statistical areas. As of September 30, 2020 (unaudited), National United, on a consolidated basis, reported total assets of $748.6 million, total loans of $450.6 million, and total deposits of $672.5 million.
Under the terms of the merger agreement, BancorpSouth will issue 3,110,000 shares of common stock, plus $33.25 million in cash, for all outstanding shares of National United Bancshares, Inc. capital stock, subject to certain conditions and potential adjustments.
“We’re excited to announce this agreement we began exploring before the COVID-19 pandemic,” stated BancorpSouth Chairman and CEO Dan Rollins. “It was important for both of our companies to take time to understand and evaluate the potential impact the pandemic would have on the potential merger. This merger creates an excellent opportunity to broaden our Central Texas presence and continue to expand in key markets. National United is a trusted financial institution that has been serving its community for more than 125 years, and its culture and mission are similar to ours. We look forward to welcoming our new customers and teammates pending the completion of this merger.”
National United President and CEO Eugene Worthington said, “We are enthusiastic about joining the BancorpSouth team. This partnership will offer our customers a broader array of products and services across a larger footprint and create value for our employees, customers, communities and shareholders.”
Upon completion of the transaction, Worthington will serve as BancorpSouth’s Area Chairman.
The merger has been unanimously approved by the boards of directors of both companies. The merger is anticipated to close during the first half of 2021, pending the receipt of regulatory approval, the approval of National United shareholders, and the satisfaction of other customary closing conditions.
National United was advised in this transaction by Stephens Inc. as financial advisor and Fenimore, Kay, Harrison & Ford, LLP as legal counsel. Alston & Bird, LLP and Waller Lansden Dortch & Davis, LLP served as legal counsel to BancorpSouth.