b1Bank Acquires Progressive Bank for $79.9 Million

News Summary

b1Bank has finalized a definitive agreement to acquire Progressive Bank for $79.9 million, enhancing its presence in northern Louisiana. The acquisition will involve the issuance of over 3 million shares to Progressive’s shareholders, who will hold a 9.3% stake post-transaction. This move positions b1Bank to significantly increase its market share in the region, with the deal expected to close in early 2026 pending approvals. Both banks emphasize their commitment to community relationships and improving services for customers.

Baton Rouge – b1Bank has officially signed a definitive agreement to acquire Progressive Bank for $79.9 million. This acquisition will significantly bolster b1Bank’s presence in northern Louisiana and marks a strategic move in the competitive banking landscape of the region.

The agreement stipulates that b1Bank will issue over 3 million shares of stock to the current shareholders of Progressive Bank. Following the completion of the transaction, shareholders of Progressive will hold a 9.3% stake in the enlarged entity.

As of Tuesday morning, b1Bank stock was trading at $26.20 per share. The stakeholders involved anticipate that the transaction will reach its completion in early 2026, pending necessary approvals from regulatory bodies and Progressive’s shareholders. The boards of directors for both banks have unanimously supported this acquisition.

About the Banks Involved

Established 50 years ago in Winnsboro, Louisiana, Progressive Bank currently operates nine branches located in Winnsboro, Monroe, West Monroe, Bossier City, and Shreveport. As recorded on June 2024, the bank has reported having $680.7 million in deposits.

b1Bank, based in Baton Rouge, stands as the largest Louisiana-based bank by total deposits, which amount to nearly $5.6 billion. As highlighted in their announcement, this acquisition serves to enhance b1Bank’s Louisiana footprint, while also significantly strengthening its deposit and liquidity profiles.

Impact of the Acquisition

The acquisition will result in Business First Bancshares Inc., the parent company of b1Bank, increasing its total assets to approximately $8.5 billion, alongside over $6.6 billion in total loans. Progressive Bank recorded total assets of $752 million, with $673 million in deposits and $65 million in equity capital as of March 31, 2025.

Both banks believe this acquisition is not only expected to be accretive to earnings but also aims to significantly reduce Progressive’s operating expenses. The statement from b1Bank emphasizes the alignment of shared values and cultures between the two banks, reiterating their focus on community relationships.

Market Share Considerations

This strategic acquisition positions Business First to considerably enhance its market share in north Louisiana. Currently, Progressive Bank commands a 5% share of deposits in its serviced counties, whereas Business First holds approximately 2.3%.

Following the completion of the acquisition, George Cummings III, the current chairman and CEO of Progressive Bank, will join the board of directors at b1Bank. Additionally, David Hampton, the president of Progressive Bank, is set to transition into the role of vice chairman overseeing the North Louisiana market at b1Bank.

Advisory Roles

In the preliminary stages of the acquisition, Raymond James & Associates, Inc. served as the financial advisor to Business First Bancshares, while Mercer Capital acted as the financial advisor to Progressive Bank, ensuring a smooth negotiation process during this monumental transition.

This acquisition demonstrates the ongoing consolidation trend within the banking industry, as larger institutions seek to expand their footprints and enhance their competitive edge in local markets. With both banks committed to serving their communities, this deal is projected to provide greater stability and improved services for the customers they serve.

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