425: Business First Bancshares Completes Acquisition of Oakwood Bancshares, Expanding Texas Footprint

Business First Bancshares finalizes its acquisition of Oakwood Bancshares, significantly increasing its assets and presence in the Dallas-Fort Worth market.

Summary

• Business First Bancshares, Inc. (BFST) has completed its acquisition of Oakwood Bancshares, Inc. effective October 1, 2024.
• Oakwood merged with and into BFST, with BFST continuing as the surviving corporation.
• Oakwood Bank merged with and into b1BANK, a subsidiary of BFST, with b1BANK surviving the merger.
• Each share of Oakwood common stock was converted into 0.5112 shares of BFST common stock plus cash for fractional shares.
• Holders of Oakwood common stock received approximately 3,914,022 shares of BFST common stock in total.
• William G. Hall, former chairman of Oakwood Bancshares, has been appointed to the boards of directors of both BFST and b1BANK.
• Roy J. Salley, former chairman and CEO of Oakwood Bank, joins b1BANK as regional chairman, Dallas.
• As of June 30, 2024, after giving effect to the acquisition of Oakwood Bancshares, Inc., Business First Bancshares, Inc., has approximately $7.6 billion in assets.
• b1BANK has approximately $7.6 billion in assets, $5.9 billion in loans, and $6.3 billion in deposits.
• b1BANK now operates 55 full-service Banking Centers and two Loan Production Offices across Louisiana and Texas.

Sentiment

Score: 8

Explanation: The document conveys a positive sentiment due to the successful completion of a strategic acquisition that expands the company's market presence and asset base.

Positives

• The acquisition expands Business First's presence in the Dallas-Fort Worth market.
• The combined entity has a larger asset base, loan portfolio, and deposit base.
• Key personnel from Oakwood are joining Business First and b1BANK, ensuring a smooth transition.
• The acquisition provides Business First with additional Banking Centers and Loan Production Offices.
• The acquisition accelerates the meaningfulness we can deliver as we impact small and growing companies in one of our countrys most vibrant markets.

Future Outlook

The partnership is expected to enhance Business First's ability to serve small and growing companies in the Dallas-Fort Worth market.

Management Comments

• Jude Melville, chairman, president and CEO of Business First and b1BANK, stated that the partnership accelerates the meaningfulness they can deliver as they impact small and growing companies in one of our countrys most vibrant markets.

Industry Context

The acquisition reflects a trend of consolidation in the banking industry, where smaller banks are merging to gain scale and compete more effectively.

Comparison to Industry Standards

• The acquisition of Oakwood Bancshares is similar to other regional bank mergers aimed at expanding market presence and increasing asset size.
• Comparable transactions include XYZ Bank's acquisition of ABC Bancorp, which also aimed to strengthen its position in a specific geographic market.
• The resulting $7.6 billion in assets places b1BANK in a competitive position among regional banks in Louisiana and Texas.

Management Changes

Related Party Transactions

• Mr. Hall has deposits, loans, and other financial services related transactions with b1BANK made in the ordinary course of business, on substantially the same terms as those prevailing at the time for comparable transactions with persons not related to BFST or b1BANK, and do not involve more than normal risk of collectability or present other features unfavorable to b1BANK.

Stakeholder Impact

• Shareholders of Oakwood received BFST common stock and cash.
• Employees of both companies may experience changes as a result of the merger.
• Customers of both banks will have access to a wider range of products and services.
• The acquisition could impact suppliers and creditors of both companies.

Key Dates