First NBC Bank Holding Co. in New Orleans is acquiring State Investors Bancorp Inc., the holding company for State-Investors Bank.
“This transaction enables us to further expand our presence within the New Orleans metropolitan area, our primary market,” said Ashton J. Ryan Jr., president and chief executive officer of the holding company for First NBC Bank.
State Investors has four full-service banking offices in the New Orleans area. As of Sept. 30, it had total assets of $269 million, total loans of $213 million and total deposits of $158 million.
First NBC has 32 full-service banking offices throughout its market and a loan production office in Gulfport, Mississippi. It had 487 employees on Sept. 30.
After the holding company merger, First NBC expects to merge the subsidiary banks under First NBC Bank’s charter.
Shareholders of State Investors will receive $21.25 in cash for each share of State Investors stock they own at the effective time of the merger. Based on 2,308,019 shares of common stock issued and outstanding as of Dec. 30, the cash payable to shareholders of State Investors is expected to be about $49 million.
First NBC expects to pay about an additional $2 million for outstanding stock options.
That is based on 221,626 stock options outstanding as of Dec. 30, with a weighted average exercise price of $12.20 per share.
First NBC estimates annual pre-tax expense savings of about 55 percent of the annual operating expenses of State Investors in the first year of the merger.
The transaction is expected to be completed in the second quarter of 2015, subject to customary closing conditions and required regulatory approvals and the approval of the shareholders of State Investors. The merger has been approved by the boards of directors of First NBC and State Investors.
“We are excited about the expanded products and services that this combination will bring to our customers and the communities we serve,” said Tony Sciortino, president and CEO of State Investors.
First NBC’s common stock trades on the Nasdaq Global Select Market. Effective Jan. 1, First NBC’s ticker symbol will change from NBCB to FNBC.
State Investors trades as SIBC on the Nasdaq Capital Market.