Renasant to acquire First Bancshares in $1.2B all-stock deal, sees accretion

Renasant (RNST) and First Bancshares (FBMS) announced that they have entered into a definitive agreement and plan of merger, pursuant to which The First will merge with and into Renasant in an all-stock transaction valued at approximately $1.2B, based on Renasant’s closing stock price as of July 26. The merger has been approved unanimously by each company’s board of directors and is expected to close in the first half of 2025. Completion of the transaction is subject to customary closing conditions, including the receipt of required regulatory approvals and the approval of Renasant and The First shareholders. Headquartered in Hattiesburg, Mississippi, The First operates 111 branches across Mississippi, Louisiana, Alabama, Florida and Georgia. As of June 30, 2024, The First had approximately $8B in total assets, $5.3B in total loans and $6.6B in total deposits. According to the terms of the merger agreement, shareholders of The First will receive 1.00 share of Renasant common stock for each share of The First common stock. Additionally, all options of The First will be cashed out at their in-the-money value at closing. Based on Renasant’s closing stock price of $37.09 per share as of July 26, the implied transaction value is approximately $37.09 per The First share, or $1.2B, in the aggregate. Excluding one-time transaction costs, the merger is expected to be immediately accretive to Renasant’s estimated earnings per share.