CLARKSDALE, MS (AP) — Officials with Planters Bank and Trust Co. and Covenant Bank have announced a merger that will create a financial institution with $1 billion in assets.
The Clarksdale Press Register’s Nathan Duff reports Covenant Bank will become part of Planters Bank.
The banks have offices throughout the Mississippi Delta and northwest Mississippi. Officials said the merger should be completed at the end of the fourth quarter of 2015.
With the merger, officials said Planters becomes the eighth largest bank headquartered in Mississippi by deposit market share.
The board of directors of each company has approved the transaction. It is subject to regulatory approval and approval by Covenant's shareholders.
"Our top priority has always been finding new ways to better serve our customers and we believe that this partnership will strengthen our ability to not only meet, but exceed their expectations," said Willis L. Frazer, chairman and CEO of Covenant.
James H. Clayton, vice chairman and CEO of Planters, said the merger creates "a sizeable Mississippi banking franchise capable of competing with larger financial institutions. We are confident in our ability to partner with a well-established institution and grow our market share together."
Planters Bank was founded in 1920 in Ruleville and expanded across the central Delta. Covenant Bank was founded in 2000 in Clarksdale, and quickly grew to five locations in the north Delta.
Planters Holding Company, the parent of Planters Bank, is headquartered in Indianola. It provides retail and commercial banking services through 13 full-service banking offices in Washington, Sunflower, Leflore, Bolivar and Humphreys counties.
Covenant Financial Corporation, the parent of Covenant Bank, is headquartered in Clarksdale. It provides financial services through five full-service banking offices in Coahoma, Tunica, DeSoto and Panola counties.
