A group of executives from the Baton Rouge area acquires a community bank and plans to open a local branch.
The deal to acquire Oak Grove-based Delta Bancshares of Louisiana Inc., the holding company of Commerce Community Bank, is expected to be in cash, but the price was not disclosed. To pay for the acquisition, the group of investors raises capital through a private offer of shares.
Commerce Community Bank has offices in Oak Grove, Louisiana and Eudora, Arkansas. It has $ 65 million in total assets, $ 55 million in deposits, and $ 39 million in total loans.
The investor group, led by Charles Chiasson as the bank’s chief executive officer, expects to “inject additional capital” into the bank for its expansion in Baton Rouge. Commerce Community Bank chairman Brian Ayers is expected to become market chairman.
Chiasson was a founding member of South Louisiana Business Bank in 2007, which was then sold to Investar Bank in 2011. Chiasson returns to banking with this deal after retiring from Investar, according to his LinkedIn profile.
“After analyzing multiple banks for a while, we found Commerce Community Bank to be a perfect fit for our growth strategy,” Chiasson said.
Scott Gaudin, former market chairman of The First, A National Banking Association, Baton Rouge, is called upon to become the director of loans for Commerce Community Bank.
Robert Daigrepont Jr., treasurer of Raising Cane’s Chicken Fingers and certified public accountant, will be the chairman of the bank’s board of directors.
“Commerce Community Bank will provide us with an immediate portfolio of loans and deposits, which typically takes a few years to produce when a bank starts from scratch,” said Daigrepont. that starting further in the process by partnering with an existing and healthy community bank was certainly a greater benefit.
Other members of the bank’s board of directors include Patrick Coogan, CEO of SportsBR Inc., Flynn Foster, CEO of Guaranty Broadcasting, Barry Hugghins, founder of Reliant Technologies Inc., a manufacturer of lubricants and additives for cooling fluids. drilling in Port Allen and Ravi Patel, commercial manager at Supreme Construction and owner of a family hotel.
The deal has already been approved by the board of directors of each entity and is expected to be finalized by the end of the first quarter of 2021.
Commerce Community Bank had $ 38 million in total loans as of June 2019 and has grown by $ 1 million in the past year to a total of $ 39.1 million as of June 30, according to federal regulatory records. It had 15 employees. Net income was $ 334,000 this year, down slightly from $ 379,000 in June 2019.