Magazine article American Banker

Regions Financial of Ala. Expanding South of New Orleans with Acquisition

Magazine article American Banker

Regions Financial of Ala. Expanding South of New Orleans with Acquisition

Article excerpt

Regions Financial Corp. beat out several other bidders in an auction to acquire Delta Bank and Trust Co. of Belle Chase, which will expand Regions' franchise in the New Orleans area.

Birmingham, Ala.-based Regions agreed to purchase Delta Bank in a tax free stock swap valued at $35 million, or 201% of Delta Bank's book value. Assuming regulatory and shareholder approvals are granted, Delta Bank will become part of Regions Bank of Louisiana, which now has $2.1 billion of assets and 43 offices around the state.

Based in the southern New Orleans suburb of Belle Chase, Delta Bank has $198 million of assets and seven branches in towns lining the Mississippi River from New Orleans south to the delta: Buras, Port Sulphur, Gretna, Harahan, Harvey, Kenner, and River Ridge.

"This merger will allow us to expand our presence in New Orleans and south Louisiana and to provide expanded banking services and opportunities to Delta Bank customers," said Regions Chairman and CEO J. Stanley Mackin. Investor relations spokesman Ronald C. Jackson said Regions was particularly attracted by Delta Bank's leading 78% deposit market share in Plaquemines Parish, which includes Belle Chase. He said Regions intends to continue building its market share in the New Orleans area, where it currently has 17 branches, $850 million of assets, and a 5% deposit market share.

The acquisition of Delta Bank will boost Regions' deposit share in New Orleans by one percentage point. …

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