KOSCIUSKO — Merchants and Farmers Bank has been a main stay in Kosciusko since 1890 and since the beginning of the banking institution, the Potts family has been involved with the company.

On February 7, the announcement of Renasant Corporation and First M&F Corporation was announced to the public.

“I personally have a great deal of attachment to the company,” First M&F Corporation Chairman and Chief Executive Officer Hugh Potts said.

He said he has a sense of what M&F means to the city of Kosciusko and five generations of the Potts family.

 Upon completion of the transaction, the combined company will have approximately $5.8 billion in total assets and will rank as the 4th largest bank by deposits in Mississippi.

“All of my decisions have been made within the context of knowing the connection between the company, the town and the Potts family,” Potts said. “However, having said that – In the mid-90s, M&F became a publicly traded company which didn’t change any of its history but, put it in a different category with regard to many things one of which is a higher level of accountability to the shareholders.”

 It also put a different set of duties upon the board of directors  and to “exercise judgement to make decisions based upon the best interest of the shareholders,” he said.

The shareholders are not the only constituency.

Potts said  there are M&F employees, the communities being served by M&F, the regulatory community, and the customer base.

“All those groups are part of the decision making process,” he said. “No one of those constituencies are exclusive.”

“As to this transaction (merger), the board of directors after lengthy

 discussions on numerous occasions made the unanimous decision to merge with Renasant,” Potts said. “It was the right thing to do. From a financial analysis, it is very good decision.

From some of those other constituencies, it becomes a mixed decision.”  

Potts said for some employees, it will represent opportunity and financial gain.

“But, as in any combination of companies, there will be some job displacement of personnel,” he said.  “I have a sensitivity and identity to the 450 people that work for the company.”  

Potts expects the “transitional” period to take the remainder of the year.

“The process from this point on is that applications will be made to the regulatory community – FDIC, the State of Mississippi, the Federal Reserve – to approve the transaction,” he said. “It will be submitted to both boards of M&F and Renasant by late June,” he said.  

“If approved the merger will take place on or about July 1,” Potts added. “There will be a conversion process and data processing that will take the rest of the year.”

The acquisition is subject to Renasant and M&F shareholder approval, regulatory approval, and other conditions set forth in the merger agreement.

"We are excited for the opportunity to expand our reach within every Renasant region, double our insurance operations, and enhance our mortgage and wealth management divisions. This merger creates a stronger Renasant franchise that allows for not only new market entries and additional branch locations within our legacy markets, but provides the realization of significant cost savings through strategic branch consolidations and future earnings growth by combining two strongly competitive community banking institutions,"  Renasant Chairman, President and Chief Executive Officer, E. Robinson McGraw, said. "M&F is a community bank with an operating philosophy centered on fast, simple and local service with a banking culture similar to our own. We believe that this partnership between these two strong, like-minded community banks will greatly benefit both Renasant's and M&F's current and future clients with our combined locations, services and product offerings."

To M&F customers, Potts said he expected account numbers to remain the same and that there would be no diminishing of services.

He said some services would be enhanced and improved as technology is ever changing.

“When (customers) walk in the door, they will see familiar faces, Potts said.

The transaction will add $1.6 billion in assets, $1.4 billion in deposits and 36 full-service locations throughout Renasant's Mississippi, Alabama and Tennessee banking franchises.

 Renasant Corporation, a 108-year-old financial services institution, is the parent of Renasant Bank and Renasant Insurance. Renasant has assets of approximately $4.2 billion and operates over 75 banking, mortgage, financial services and insurance offices in Mississippi, Tennessee, Alabama and Georgia.

Submitted press information contributed to this story.