Commercial Bank & Trust Company, a West Tennessee lender chartered in 1877, is merging into Renasant Bank under a deal announced Tuesday that will fold nine branches across Paris, Union City, Jackson and Memphis into a Southeastern banking franchise with roughly $28.6 billion in total assets once the transaction closes.
Renasant Corporation and Commercial Holding Company, the Paris, Tennessee-based parent of Commercial Bank, jointly announced the definitive merger agreement on Tuesday, according to Renasant Corporation. Under the terms, Commercial shareholders will receive 0.8798 shares of Renasant common stock for every share of Commercial common stock they hold, adding up to approximately 2.64 million Renasant shares in aggregate, as first reported by Radio NWTN.
Before the deal closes, Commercial will pay its shareholders a special cash dividend of approximately $35.7 million. Combined with the stock consideration, the deal carries an aggregate transaction value of approximately $142 million, based on Renasant's 10-day average closing price of $40.29 as of October 26, per the companies' statement. The merger has already won unanimous approval from both companies' boards of directors, though it still requires customary closing conditions, regulatory sign-off and approval from Commercial shareholders before it can close in the first quarter of 2027.
A 149-Year-Old West Tennessee Institution Changes Hands
Commercial Bank has operated in West Tennessee since it was chartered in 1877, running nine full-service branches in Paris, Union City, Jackson and Memphis. As of September 30, the bank reported approximately $1.1 billion in total assets, $648 million in total loans and $983 million in total deposits, with its trust and wealth management arm managing roughly $1.2 billion in assets. Immediately after the parent-company merger closes, Commercial Bank will merge directly into Renasant Bank, a 122-year-old institution that is itself the banking subsidiary of Renasant Corporation, which trades under the ticker RNST and currently holds about $27.5 billion in assets across 278 banking, lending, mortgage and wealth management offices throughout the Southeast.
Roy Molitor “Mott” Ford Jr., Commercial's chairman and chief executive officer, is expected to join Renasant in a market executive role once the deal closes. Ford said Renasant was the right partner for Commercial's shareholders, associates and customers, pointing to shared culture and capabilities between the two companies. Kevin Chapman, Renasant's president and CEO, said the partnership strengthens Renasant's presence in Memphis and brings long-tenured deposit and wealth relationships across West Tennessee, adding that Renasant looks forward to welcoming Commercial's employees, customers and shareholders and building on the foundation Ford and his team established.
What The Combined Franchise Will Look Like
Once the merger closes, the combined company is expected to carry approximately $28.6 billion in total assets, $20.4 billion in total loans and $22.6 billion in total deposits, creating a larger Southeastern banking franchise. In Tennessee specifically, the combined operation will run 28 branches holding approximately $2.6 billion in deposits. Renasant also offers factoring and asset-based lending nationwide, a service line that extends beyond its traditional Southeastern branch footprint.
On the advisory side, Keefe, Bruyette & Woods, a Stifel company, is serving as Renasant's exclusive financial advisor and rendered a fairness opinion to its board, while Phelps Dunbar LLP is acting as Renasant's legal advisor. Commercial, meanwhile, retained Olsen Palmer LLC as its exclusive financial advisor, which also rendered a fairness opinion to Commercial's board, with Alston & Bird LLP serving as Commercial's legal counsel.
Deal Details Head To Renasant's Earnings Call
Renasant plans to discuss the merger further during its third-quarter 2026 earnings webcast and conference call with analysts, scheduled for Wednesday at 10:00 a.m. Eastern time. The company will also furnish an investor presentation as an exhibit to a current report on Form 8-K filed with the Securities and Exchange Commission, with that presentation set to be posted on Renasant.com under the News & Market Data tab. The webcast will be archived on Renasant's site and is accessible through the company's investor relations website after the live call concludes.
Tennessee's community-bank sector has seen similar consolidation elsewhere in the state recently; in September, U Bancshares in Huntington, Kentucky agreed to buy Heritage Community Bank in Burlington, Kentucky, according to the ABA Banking Journal. Separately, the FDIC has issued a notice of proposed rulemaking aimed at modernizing how it reviews bank mergers under the Bank Merger Act, according to the FDIC.
