On December 2, Tupelo, Mississippi-based BancorpSouth Bank announced the signing of a definitive merger agreement with National United Bancshares Inc., the parent company of Gatesville-based National United, pursuant to which National United will be merged with and into BancorpSouth. The merger is anticipated to close during the first half of 2021.
National United, established in 1889, operates six full-service banking offices in the metropolitan statistical areas of Killeen/Temple, Waco and Austin/Round Rock/Georgetown. As of September 30, National United 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,” says Dan Rollins, BancorpSouth chairman and CEO. “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.”
“We are enthusiastic about joining the BancorpSouth team,” says Eugene Worthington, National United president and CEO. “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.
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.
Established in 1876, BancorpSouth Bank reports approximately $24 billion in assets and operates approximately 310 full-service branch locations, as well as additional mortgage, insurance and loan production offices in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas.