Business First Bancshares, Inc. Receives Regulatory Approval of its Merger with Oakwood Bancshares, Inc.

Rhea-AI Summary

Business First Bancshares, Inc. (Nasdaq: BFST), the holding company for b1BANK, has received all required regulatory approvals for its merger with Oakwood Bancshares, Inc. The merger, approved by Oakwood's shareholders on August 27, 2024, is expected to be completed on October 1, 2024. Upon completion, b1BANK's assets will increase to approximately $7.6 billion, with over $5.9 billion in consolidated total loans. The merger will add four full-service banking centers in the Dallas-Fort Worth metropolitan area and two additional branches in Texas. Roy J. Salley will join b1BANK as regional chairman, Dallas, and William G. Hall will be appointed to the boards of directors of Business First and b1BANK.

Positive

• Regulatory approvals received for the merger with Oakwood Bancshares
• b1BANK's assets expected to increase to $7.6 billion post-merger
• Consolidated total loans to reach $5.9 billion
• Addition of 6 new banking centers in Texas, including 4 in Dallas-Fort Worth area
• Expansion of presence in the Dallas-Fort Worth market

Negative

• None.

Insights

Financial Analyst

The regulatory approval for Business First Bancshares' merger with Oakwood Bancshares marks a significant milestone in the consolidation of regional banking assets. This merger will boost Business First's total assets to approximately $7.6 billion, with consolidated loans reaching $5.9 billion. The expansion into the Dallas-Fort Worth market through the addition of four full-service banking centers is strategically important for b1BANK's growth trajectory. From an investor's perspective, this move could potentially lead to increased market share and improved economies of scale, which may translate to enhanced profitability in the long term. However, investors should closely monitor integration costs and potential cultural challenges that often accompany mergers of this scale.

Market Research Analyst

The merger between Business First and Oakwood is poised to reshape the competitive landscape in the Dallas-Fort Worth banking sector. With the addition of Oakwood's branches, b1BANK is set to strengthen its foothold in this high-growth metropolitan area. This strategic move aligns with the broader trend of regional banks consolidating to compete more effectively against national institutions. The market's reaction to this news will likely be positive, as it demonstrates Business First's commitment to expansion and its ability to execute on strategic acquisitions. Investors should watch for potential synergies and cost savings that could emerge from this merger, as well as any shifts in customer retention rates post-integration.

Legal Expert

The receipt of all required regulatory approvals for this merger is a crucial legal milestone. It signifies that the transaction has cleared significant regulatory hurdles, including likely scrutiny from the Federal Reserve and state banking authorities. The shareholder approval from Oakwood further solidifies the legal foundation of this merger. Investors should note that while major legal obstacles have been overcome, the closing remains subject to customary conditions. This typically includes final documentation and potential last-minute regulatory considerations. The appointment of Oakwood's executives to key positions in the merged entity, including board seats, suggests a well-structured governance plan, which is often critical for smooth post-merger integration and regulatory compliance.

BATON ROUGE, La., Sept. 03, 2024 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (Business First) (Nasdaq: BFST), the holding company for b1BANK, announced it has received all required regulatory approvals and non-objections to complete its merger with Oakwood Bancshares, Inc. (Oakwood), the holding company for Oakwood Bank, a Texas banking association. On August 27, 2024, Oakwood’s shareholders voted to approve the merger.

“We appreciate our regulatory partners’ efficient review of the proposed transaction as well as the strong affirmation expressed by the Oakwood shareholder base,” said Jude Melville, chairman, president and CEO of Business First and b1BANK. “We are even more excited about the long-term potential of this relationship than when we first announced it and look forward to together growing b1’s impact across the Dallas-Fort Worth market.”

Upon completion, it is expected that b1BANK’s assets will increase to approximately $7.6 billion, with over $5.9 billion in consolidated total loans. This will also add four full-service banking centers to b1BANK’s footprint in the Dallas-Fort Worth metropolitan area, as well as one branch in each of Snyder and Oakwood, Texas. Roy J. Salley, chairman and chief executive officer of Oakwood Bank, will join b1BANK as regional chairman, Dallas, and William G. Hall, chairman of Oakwood Bancshares, Inc., will be appointed to the boards of directors of Business First and b1BANK.

The merger is expected to be completed on October 1, 2024, and remains subject to the satisfaction of customary closing conditions.

Raymond James & Associates, Inc., functioned as financial advisor to Business First, and Hunton Andrews Kurth LLP served as legal counsel to Business First. Stephens Inc. served as financial advisor to Oakwood, and Norton Rose Fulbright US, LLP served as legal counsel to Oakwood.

About Business First Bancshares, Inc.

As of June 30, 2024, Business First Bancshares, Inc. (Nasdaq: BFST), through its banking subsidiary b1BANK, had $6.7 billion in assets, $6.1 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $0.9 billion of b1BANK assets managed by SSW) and operates Banking Centers and Loan Production Offices in markets across Louisiana and the Dallas and Houston, Texas areas, providing commercial and personal banking products and services. Commercial banking services include commercial loans and letters of credit, working capital lines and equipment financing, and treasury management services. b1BANK was awarded #1 Best-In-State Bank, Louisiana, by Forbes and Statista, and is a multiyear winner of American Banker’s “Best Banks to Work For.” Visit b1BANK.com for more information.

Special Note Regarding Forward-Looking Statements  
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act. These forward-looking statements reflect the current views of BFST with respect to future events and BFST’s financial performance. Any statements about BFST’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. BFST cautions that the forward-looking statements in this document are largely based on BFST’s current expectations, estimates, projections, goals and forecasts and management assumptions about the future performance of each of BFST, Oakwood and the combined company, as well as the businesses and markets in which they do and are expected to operate. These forward-looking statements are not guarantees of future performance and involve a number of known and unknown risks, uncertainties and assumptions that are difficult to assess and are subject to change based on factors which are, in many instances, beyond BFST’s control. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) the expected impact of the proposed transaction between BFST and Oakwood on the combined entities’ operations, financial condition, and financial results; (2) the businesses of BFST and Oakwood may not be combined successfully, or such combination may take longer to accomplish than expected; (3) the cost savings from the proposed transaction may not be fully realized or may take longer to realize than expected; (4) operating costs, customer loss and business disruption following the proposed transaction, including adverse effects on relationships with employees, may be greater than expected; (5) the failure to satisfy the conditions to completion of the proposed transaction; (6) the failure of the proposed transaction to close for any other reason; (7) the impact on BFST and Oakwood, and their respective customers, of a decline in general economic conditions that would adversely affect credit quality and loan originations, and any regulatory responses thereto; (8) potential recession in the United States and BFST’s and Oakwood’s market areas; (9) the impacts related to or resulting from bank failures and any continuation of the uncertainty in the banking industry, including the associated impact to BFST, Oakwood and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; (10) the impact of changes in market interest rates, whether due to continued elevated interest rates resulting in further compression of net interest margin or potential reductions in interest rates resulting in declines in net interest income; (11) the persistence of the current inflationary pressures, or the resurgence of elevated levels of inflation, in the United States and the BFST and Oakwood market areas; (12) the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; (13) uncertainty regarding United States fiscal debt and budget matters; (14) cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; (15) competition from other financial services companies in BFST’s and Oakwood’s markets; or (16) current or future litigation, regulatory examinations or other legal and/or regulatory actions. Additional information regarding these risks and uncertainties to which BFST’s business and future financial performance are subject is contained in BFST’s most recent Annual Report on Form 10-K on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of such documents, and other documents BFST files or furnishes with the SEC from time to time, which are available on the SEC’s website, www.sec.gov. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements due to additional risks and uncertainties of which BFST is not currently aware or which it does not currently view as, but in the future may become, material to its business or operating results. Due to these and other possible uncertainties and risks, BFST can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this document. Any forward-looking statements presented herein are made only as of the date of this document, and BFST does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, new information, the occurrence of unanticipated events, or otherwise, except as required by applicable law. All forward-looking statements, express or implied, included in the document are qualified in their entirety by this cautionary statement.

Additional Information
For additional information on Business First, you may obtain Business First’s reports that are filed with the Securities and Exchange Commission (SEC) free of charge by using the SEC’s EDGAR service on the SEC’s website at www.sec.gov or by contacting the SEC for further information at 1-800-SEC-0330. Alternatively, these documents can be obtained free of charge from Business First by directing a request to: Business First Bancshares, Inc., 500 Laurel Street, Suite 100, Baton Rouge, Louisiana 70801, Attention: Corporate Secretary.

Misty Albrecht
b1BANK
225.286.7879
Misty.Albrecht@b1BANK.com

FAQ

When is the Business First Bancshares (BFST) merger with Oakwood Bancshares expected to complete?

The merger between Business First Bancshares (BFST) and Oakwood Bancshares is expected to be completed on October 1, 2024, subject to the satisfaction of customary closing conditions.

How will the merger affect Business First Bancshares' (BFST) asset size?

Upon completion of the merger, b1BANK's assets are expected to increase to approximately $7.6 billion, with over $5.9 billion in consolidated total loans.

How many new banking centers will Business First Bancshares (BFST) gain from the Oakwood merger?

Business First Bancshares (BFST) will gain six new banking centers from the Oakwood merger: four in the Dallas-Fort Worth metropolitan area, one in Snyder, and one in Oakwood, Texas.

Who will join Business First Bancshares' (BFST) leadership team after the Oakwood merger?

Roy J. Salley, chairman and CEO of Oakwood Bank, will join b1BANK as regional chairman, Dallas. William G. Hall, chairman of Oakwood Bancshares, will be appointed to the boards of directors of Business First and b1BANK.