Park National in Newark, Ohio, has agreed to buy First Citizens Bancshares in Dyersburg, Tenn.
The $9.9 billion-asset Park said in a press release that it will pay $317.3 million in stock for the $2.6 billion-asset First Citizens. The deal, which is expected to close in the first quarter, priced First Citizens at 168% of its tangible book value.
The deal, Park’s first in seven years, will serve as its entry into Tennessee. Park will also cross over $10 billion of assets.
“We’re delighted to welcome the exceptional bankers at First Citizens to the Park team,” Park Chairman and CEO David Trautman said in the release. “We look forward to serving alongside them as we help more customers and communities flourish.”
First Citizens CEO and President Jeff Agee will lead the Park’s new Tennessee region, and one First Citizens’ director will join Park’s board.
The deal should be 15% accretive to Park’s 2026 earnings per share, excluding merger-related charges and including cost savings.
Park expects to cut 30% of First Citizens’ annual noninterest expenses. Park expects to incur $36.2 million in merger-related charges.
Park said it plans to sell about $100 million of First Citizens’ securities at a pretax loss of $1.4 million. Proceeds would be used to pay down or pay off higher-cost funding.
Piper Sandler, Hovde Group and Squire Patton Boggs advised Park. Olden Palmer and Husch Blackwell advised First Citizens.