Renasant Corp. and The First Bancshares, Inc. (The First) jointly announced a definitive merger agreement through an all-stock transaction valued at approximately $1.2 billion. Renasant will absorb 111 branches operated by The First, along with its $8 billion in total assets.
The merger will result in a six-state Southeastern banking franchise with approximately $25 billion in total assets, $18 billion in total loans and $21 billion in total deposits, based on financial data as of June 30, according to a joint press release.
The transaction is expected to close the first half of 2025, subject to customary closing conditions, required regulatory approvals and the approval of Renasant and The First shareholders. Both boards of directors have unanimously agreed to the terms of the merger.
“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 Mitch Waycaster said in the release. “As with Renasant, The First has expanded into some of the most dynamic, fastest growing markets in the Southeast. Together, we create a more valuable company with the meaningful scale needed to compete in today’s operating environment.”
The merger plan also includes the adoption of a community benefit plan, which stipulates that, upon completion of the merger, Renasant is committed to a five-year, $10.3 billion plan to foster economic growth, access to financial services and inclusion.
“This merger will greatly benefit our current and future customers by expanding our locations, services and products,” Renasant President Kevin Chapman said. “The First is a strong community bank with employees who are deeply invested in the markets they serve. We look forward to enhancing our ability to serve the needs of our customers and communities through this merger.”
The First President and CEO M. Ray “Hoppy” Cole will become a senior executive vice president and join both the boards of directors of both Renasant and Renasant Bank, the release states. Three additional independent directors of The First will be appointed to both the Renasant and Renasant Bank boards of directors, and two additional independent directors of The First will be appointed to the Renasant Bank board of directors.
“At The First, we are proud of the team we have assembled and the company we have built together. The First has always operated with a community-first mindset, building strong, trust-based relationships with our clients and the markets we serve,” Cole said. “Going forward, we are excited for our customers, bankers and shareholders to experience our next chapter as we join Renasant and form a leading Southeast regional bank with the scale and capabilities of a larger bank while maintaining the community bank touch our customers have come to expect. Because of our great respect for the culture Renasant has established and the like-minded manner in which they operate, we believe this merger will create significant benefits for all stakeholders.”
Renasant’s exclusive financial advisor, Stephens Inc., rendered a fairness opinion to Renasant’s board of directors, and Covington & Burling LLP is serving as its legal advisor. Keefe, Bruyette & Woods, A Stifel Company, is serving as exclusive financial advisor and rendered a fairness opinion to The First’s board of directors, and Alston & Bird LLP is serving as its legal advisor.