On April 25, Business First Bancshares Inc., the holding company for Baton Rouge, Louisiana-based b1Bank, announced that it entered into a definitive agreement to acquire Oakwood Bancshares Inc. and its subsidiary, Dallas-based Oakwood Bank, in an all-stock transaction for total consideration value of approximately $85.7 million based on the company’s closing price of $21.57 per share on April 22. The proposed transaction is expected to close in the fourth quarter of 2024.
Once completed, it is expected that the acquisition will increase the company’s consolidated total assets to approximately $7.4 billion, with more than $5.6 billion in consolidated total loans. As of December 31, 2023, Oakwood Bank reported total assets of $843 million, total deposits of $732 million and total equity capital of $90.7 million. As a result of the proposed transaction, b1BANK will add four full-service banking centers in Dallas, one full-service banking center in Oakwood and one full-service banking center in Snyder.
“Expansion in the Dallas market has been a successful focus of b1Bank for a number of years,” says Jude Melville, acting chairman, president and CEO of Business First. “We believe the proposed transaction with Oakwood is an effective and efficient way to deepen our customer, employee and shareholder bases in what is arguably one of America’s strongest markets. Oakwood Bank and b1Bank share similar community-oriented cultures and values.”
“The transaction will accelerate our ability to grow within the Dallas market and creates an exciting opportunity for our shareholders and employees,” says Roy J. Salley, chairman and CEO of Oakwood Bank. “The Oakwood board of directors believes Business First is well positioned and has significant upside opportunity through stock price appreciation. The Business First platform will allow Oakwood to better serve its existing customers and communities, as well as expand into other product offerings. We admire the historical success of Jude Melville and the b1Bank team and look forward to working together.”
Upon completion of the proposed transaction, Salley will join b1Bank as regional chairman/Dallas. Additionally, William G. Hall, chairman of Oakwood Bancshares Inc., will be appointed to the boards of Business First Bancshares and b1Bank.
Established in 2006, b1Bank operates banking centers and loan production offices in markets across Louisiana and the Dallas and Houston regions.
