A merge between two Mississippi banks was recently announced to strengthen the acquirer's presence in the southern region of the state, where a larger competitor is also expanding. BankFirst Capital Corp. is set to acquire The Magnolia State Corp., forming a company with assets totaling $3.2 billion. The specifics of the deal were not revealed.

BankFirst, based in Columbus, Mississippi, operates 42 offices in Mississippi and Alabama, while Magnolia State has eight branches, all situated in southern Mississippi. BankFirst's President and CEO, Moak Griffin, expressed enthusiasm about the collaboration, stating that they aim to establish strong connections with Magnolia's staff and clients for the benefit of the communities they operate in.

Under the terms of the agreement, Kris Mangum, Magnolia State's CEO, will assume the role of BankFirst's regional president for Southern Mississippi. Mangum highlighted the alignment in values between the two banks, emphasizing a seamless transition rooted in community banking. The merger intends to broaden the range of financial services accessible to customers while upholding existing relationships with dedicated teams.

The acquisition will enhance BankFirst's footprint in Hattiesburg, a city with approximately 48,000 residents. As of June 30, 2024, Magnolia State held the ninth-largest share of deposits in the Hattiesburg metro area at 2.86%, with BankFirst ranking 17th at 0.50%, according to FDIC data. The First Bancshares, headquartered in Hattiesburg and holding the third-largest deposit share in the market, is also undergoing acquisition by Tupelo's Renasant Corp.