"Kevin Reynolds, banking analyst with Wunderlich Securities Inc., who covers BancorpSouth, wrote “perhaps the company should sell itself. Given the struggle that BXS is enduring, we believe it is becoming increasingly possible that the company may attract buyer interest in its valuable eight-state footprint and low-cost deposit base.”
With all the divisiveness in Mississippi, it sure would be nice, if for once, stubborn pride & lustful power & greed could be overcome to produce a $25B banking institution domiciled in state. I have not talked to ONE person that thinks this is a bad idea. The synergies would be strong.
Cowboy, I hate to be the one to tell you, but nobody is interested in BXS. At one time, it was a very attractive franchise on the rise. Now it is a battered old worn out bank domiciled in a market famous for the likes of Sir Allen Stanford. Aided by poor regulatory oversight and non existent CPA scrutiny, BXS sat on it's major problems for years, all while hoping that conditions would improve. The bank will probably not fail, but it will drift down to $5-$7 per share, before any serious interest develops. Even at $13-$14, this is still a great short opportunity.
With 15% market share of deposits, RF has the largest market share in MS. With 13% market share of deposits, TRMK has the largest market share in MS of a domiciled bank, followed by the 11% of BXS.
With 23% market share of deposits, RF, domiciled in AL, has the largest market share of any bank doing business in AL. WFC is second with 12%.
A combined TRMK/BXS would have a market share deposit in MS of 24% followed by RF with 15%. I do not see a problem with the FED in a combination of TRMK/BXS in regards of deposit market share. I strongly suspect that there is less overlap in various MS markets with TRMK/BXS in MS than there was with RF/ASO in AL. The biggest overlap is of course in the home markets of each. That would be expected. I do not see either as a significant issue. Some of the Jackson metro branches could be sold. Tupelo is such a small market, I do not see the Feds being that concerned. The synergies could be huge. Both CEOs are retirement age. TRMK has made succession plans which should not be an issue. GH would be an excellent CEO of the combined bank.