), a bank holding company headquartered in Tupelo, MS, announced
the inking of an acquisition deal through its subsidiary,
BancorpSouth Insurance Services, Inc. ('BXSI'). As per the
announcement, BancorpSouth Insurance Services will take over the
assets of Lafayette, LA-based Knox Insurance Group, LLC (Knox).
Though financial terms of the deal have not been publicly
revealed, it is expected to close soon.
Knox is an independent full-service commercial insurance
brokerage firm in operation since 1972. Currently, it generates
annual revenue of nearly $3 million and has a large commercial
client base. Knox Insurance Group specializes in offering
complete risk management package to the clients from various
sectors such as marine, energy and industrial coverage.
BancorpSouth's acquisition of the company is anticipated to
increase the former's market share in Southwest Louisiana.
Additionally, the strong commercial network of Knox will benefit
BancorpSouth going forward.
This is not the first time BancorpSouth has entered into an
acquisition deal this year. In fact, this South-East bank has
already signed two merger and acquisition (M&A) deals
earlier. On Jan 22, 2014, BancorpSouth inked a deal with Central
Community Corp., headquartered in Temple, TX.
According to the terms of this deal, Central Community Corp.
will merge with it. Again, on Jan 8, 2014, Bancorp had penned a
merger agreement with Ouachita Bancshares Corp., the parent
company of Ouachita Independent Bank, headquartered in Monroe,
LA. The current acquisition announcement is perfectly in line
with the M&A strategy that the company is pursuing.
Moreover, being a "well capitalized" financial holding company
with both Tier 1 risk-based capital and total risk based capital
(for the last reported quarter) well above the minimum required
levels, financing the latest deal should not be too difficult for
The agreement will aid Knox, too, as BancorpSouth Insurance
Services' wide array of products and services as well as large
scale operations will complement its line of business.
BancorpSouth currently carries a Zacks Rank #3 (Hold). Some
better-ranked stocks in the regional bank space include
Capital City Bank Group Inc.
Farmers Capital Bank Corp.
). All of these sport a Zacks Rank #1 (Strong Buy).
BNC BANCORP (BNCN): Free Stock Analysis
BANCORPSOUTH (BXS): Free Stock Analysis
CAPITAL CITY BK (CCBG): Free Stock Analysis
FARMERS CAP KY (FFKT): Free Stock Analysis
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