BancPlus Corporation, the parent company of BankPlus, and State Capital Corp., parent company of State Bank & Trust Company, jointly announced Thursday the signing of a definite merger agreement.

State Capital shareholders will receive shares of BancPlus common stock for each share owned of State Capital common stock, valued at $38.75 per share. Based on financial date as of June 30, the combined company will have approximately $4.2 billion in assets, deposits of $3.7 billion and gross loans of $3.1 billion.

The merger agreement was unanimously approved by each company’s board of directors and is expected to close in the first quarter of 2020, pending closing conditions, including required regulatory approvals and approval of State Capital shareholders.

Headquartered in Greenwood, State Bank was founded in 1898 and is the 10th largest financial institution headquartered in Mississippi. It operates 34 branches in Mississippi, Louisiana and Alabama.

State Bank currently operates three branches in Brookhaven.

As of June 30, State Bank held approximately $1.2 billion in total assets, $1 billion in deposits and $0.9 billion in gross loans. State Bank’s acquisition by BancPlus creates the sixth largest bank by deposits in the state, and allows BankPlus to enter markets in Louiaiana and Alabama.

Kirk Graves, CEO of State Bank, will join the senior executive management team of BankPlus upon completion of the merger.

“We are excited to join a well-regarded institution with strong community banking roots in Mississippi,” said Graves. “BankPlus is one of the fastest growing banks in Mississippi, and we look forward to joining a team so dedicated to its customers and employees.”

“This merger not only represents two of Mississippi’s oldest banks coming together with shared values and strong roots in the communities we serve, it also represents an even stronger bank going forward, focused on the future and exceeding the expectations of our customers,” said William A. Ray, president and CEO of BankPlus.

Founded in 1909, BankPlus is headquartered in Ridgeland and was chartered in Belzoni. BankPlus currently has 55 locations in the state and, as of June 30, had $2.9 billion in total assets, $2.6 billion in deposits and $2.1 billion in gross loans.