BankFirst Capital Corporation, parent of BankFirst Financial Services, announced the signing of a definitive merger agreement with Mechanics Banc Holding Company, the parent company of Mechanics Bank, Water Valley, MI, under which BankFirst will acquire Mechanics and Mechanics Bank. The transaction has been approved by the board of directors of each company, is expected to close in the first quarter of 2023, and is subject to customary closing conditions, including approval from the shareholders of Mechanics and bank regulatory authorities.
BankFirst’s President and Chief Executive Officer Moak Griffin said, “We are excited about the proposed acquisition of Mechanics Bank and expanding our footprint in the Water Valley and Oxford markets. Being a strong, local community bank for the communities we serve is extremely important to us and the combined company will collectively have over 264 years of community banking experience in the State of Mississippi. This merger will allow us to build upon and further strengthen our shared beliefs, community focus and commitment to service excellence and relationship banking. We look forward to meeting and working with all of Mechanics’ employees and customers.”
After the merger with Mechanics and Mechanics Bank is completed, and assuming the completion of the previously announced merger with Tate Financial Corporation and Sycamore Bank, the Bank is expected to have 47 offices serving Mississippi and Alabama, and have assets in excess of $2.7 billion.
Cameron Tyler, Chief Executive Officer and Chairman of Mechanics and Mechanics Bank, said, “This is a great opportunity for our shareholders, customers, employees and communities. We look forward to joining the BankFirst team as they share our core values centered on community banking. This merger will expand the portfolio of financial products and services we are able to offer our customers while preserving our team and the relationships built over many years. BankFirst’s commitment to our local team of bankers will ensure that our customers will still do business with the people they have grown to trust. I am excited for the momentum this partnership will produce and the positive impact it will have within our communities.”
Following the merger, Tyler will remain with the Bank, serving as the Bank’s Oxford Mississippi Regional President.
BankFirst was advised by Southard Financial, LLC as financial advisor and Hunton Andrews Kurth LLP is serving as its legal counsel. Mechanics was advised by Olsen Palmer LLC as financial advisor and Jones Walker LLP as legal counsel.