Paris-based Security Bank and Trust Company ($472 million in assets, as of December 31, 2019), and Dyer-based Dyer F&M Bancshares, Inc., the parent bank holding company of The Farmers & Merchants Bank ($99 million in assets, as of December 31, 2019) announced Friday the signing of a definitive merger agreement.
Under the terms of the merger, The Farmers & Merchants Bank will merge into Security Bank and Trust Company.
“This merger is a continuation of our strategy to expand our geographic footprint in common or contiguous markets with long-term growth potential,” said Barry McIntosh, President and CEO of Security Bank and Trust Company. “Moreover, The Farmers & Merchants Bank customers and Gibson County will benefit from the continued presence and engagement of a locally managed bank.”
“This merger creates tremendous opportunities to build on the successes that each company has achieved individually in its own markets,” said Joel Reynolds, President of The Farmers & Merchants Bank. “We are uniting two strong community banks and creating greater customer opportunities, growth potential, and profitability.”
Upon completion of the transaction, based on financial results as of December 31, 2019, the combined bank will have approximately $575 million in total assets, $500 million in total deposits, and $395 million in total loans. The headquarters for the combined bank will remain in Paris, Tennessee.
The transaction is expected to close mid-year 2020, pending regulatory approvals, the approval of the shareholders of Dyer F&M Bancshares, Inc., and the satisfaction of other customary closing conditions. Upon closing of the transaction, on a pro forma basis, Security Bank and Trust Company will continue to maintain regulatory capital ratios in excess of the “well-capitalized” level.
Security Bank and Trust Company serves Paris and Henry County with ten branches throughout West Tennessee including Martin, Union City, Hornbeak, and Fulton, Kentucky.
Additionally, Security Bank and Trust Company will be opening a new branch on Highway 45 in Milan in March 2020, furthering expansion and the bank’s commitment to Gibson County.
Meanwhile, The Farmers & Merchants Bank is a full-service community bank operating offices in Dyer, Humboldt, and Trenton, all in Gibson County.