Farmers & Merchants Bank, based in Dyer, has agreed to merge into Security Bank and Trust Co., based in Paris.
The merger agreement was jointly announced Friday morning in a press release by Security and Dyer F&M Bancshares Inc., the parent bank holding company of F&M Bank.
Security Bank already has assets of $472 million with its main bank in Paris and 10 branches throughout West Tennessee, including Martin, Union City and Hornbeak, plus Fulton, Ky. It’s also planning to open a new branch in March on Highway 45 in Milan.
F&M Bank has assets of $99 million and offices in Dyer, Humboldt and Trenton — all in Gibson County where Milan is located.
Under the terms of the merger, F&M Bank will merge into Security Bank, and the combined bank’s headquarters will remain in Paris.
Security Bank President and CEO Barry McIntosh said, “This merger is a continuation of our strategy to expand our geographic footprint in common or contiguous markets with long-term growth potential.”
“Moreover, the Farmers & Merchants Bank customers and Gibson County will benefit from the continued presence and engagement of a locally managed bank.”
F&M Bank President Joel Reynolds said, “This merger creates tremendous opportunities to build on the successes that each company has achieved individually in its own markets.”
“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 Dec. 31, the combined bank will have about $575 million in total assets, $500 million in total deposits and $395 million in total loans.
The transaction is expected to close mid-year 2020, pending regulatory approvals, the approval of the shareholders of Dyer F&M Bancshares and the satisfaction of other customary closing conditions.
Upon closing of the transaction, on a pro forma basis, Security Bank will continue to maintain regulatory capital ratios in excess of the “well-capitalized” level, McIntosh said.
Security Bank (www.securitybanktn.com) was founded in 1905 in Cottage Grove, while F&M Bank (www.dyerfmbank.com) was founded in 1895 in Dyer.