DMMS closes deal on M C Bank merger

DMMS Purchaser Inc., an investor group led by former IberiaBank Corp. leaders Daryl Byrd, Mark Tipton, Michael Brown and Scott Price, on Friday announced it closed on the merger of MC Bancshares Inc., the holding company for M C Bank & Trust Co. On completion of the merger, DMMS, as the surviving corporation, will change its name to MC Bancshares Inc.

The terms of the merger were initially agreed to Dec. 16 and finalized on Feb. 5. On March 19 and April 15, the Louisiana Office of Financial Institutions and the Board of Governors of the Federal Reserve System, granted regulatory approval of the proposed merger between DMMS and MCBI.

DMMS also announced it secured more than $225 million from more than 550 investors through what is likely one of the largest-ever friends-and-family capital raises for a bank. While DMMS needed only $175 million to fund its plan to grow MCBANK, the success of its capital raise far exceeded expectations and demonstrated strong investor confidence in the track record of the team and its business plan for the future.

“This response has been humbling,” said Daryl Byrd, who will serve as CEO and chairman of MCBI following the merger. “The depth and breadth of support we saw in such a short period of time reflects the confidence investors – many of whom are expected to also be future clients – have in our team, our strategy, and the opportunity we see to build a meaningful regional banking franchise.”

“We could not be more pleased with the tremendously positive response we saw from investors, particularly those in Georgia and Louisiana,” said Mark Tipton, who will serve as president of MCBANK following the merger. “Starting with such strong investor support from the communities we will serve provides a solid capital foundation as we build our brand in strong Southeastern markets.”

“This milestone represents the beginning of an exciting new chapter for MCBI and MCBANK,” said Kenneth Nelkin, who will continue to serve on the MCBI and MCBANK boards of directors. “MCBANK has built something special over the past 70 years – a bank grounded in relationships and community. We are excited to build on that legacy while investing in the people, technology, and capabilities needed to support continued growth.”

“This level of investor support for this group of seasoned banking executives, by local business and community leaders, is a powerful vote of confidence in the strength of regional banking,” said Thomas B. Michaud, CEO of Keefe, Bruyette & Woods, a Stifel Company (“KBW”). “We are proud to have played a role in this landmark transaction.”

This combination is expected to establish MCBANK as a larger, stronger, more competitive financial institution that is well-positioned to serve customers and communities across its markets, DMMS said in a press release. The new capital is expected to significantly strengthen and further MCBANK’s already strong balance sheet and support a long-term growth strategy focused on expanding its regional footprint while maintaining the relationship- driven service that has defined MCBANK for decades.

Founded in 1955 in Morgan City, Louisiana, the Louisiana markets MCBANK currently serves include Morgan City, New Orleans, Houma, Lafayette and the Northshore. Immediately following the merger, MCBANK intends to grow its markets to also include Atlanta, Georgia and Baton Rouge, Louisiana. The bank will continue operating under the MCBANK name.

“Community banking is built on trust and relationships,” Byrd said. “The investors participating in this effort know our team, understand our vision, and share our belief that MCBANK represents a compelling platform for long-term growth. We look forward to bringing our teams together to deliver enhanced value and expanded capabilities for the clients and communities we are privileged to serve.”

Byrd previously led IberiaBank through a period of significant expansion, delivering a 982% total return to shareholders between 1999 and 2019, placing Iberia Bank among the top performers in its peer group during that time.

Joining Byrd upon completion of the merger will be Chris LeBato, who has served as CEO of MCBANK since 2021 and will transition to his role on the executive committee as vice chairman, managing director and chief of staff. Additionally, current MCBANK board members who served on the board prior to the merger will remain on MCBANK’s board of directors.

MCBI’s board will include experienced directors Angus R. Cooper II, CEO of Cooper/T. Smith Corp. and a former member of the IberiaBank board; William H. Fenstermaker, chairman and CEO of C. H. Fenstermaker & Associates Inc. and former chairman of the IberiaBank board; Michael C. Slocum, former president of commercial banking at Capital One Financial Corporation; Daryl G. Byrd; Mark W. Tipton; Michael J. Brown; and legacy MCBI director, Kenneth I. Nelkin.

Several former IberiaBank executives who join Byrd in the leadership team will include Mark Tipton as president, Michael Brown as chief operating officer, Scott Price as chief financial officer, Rodney Hall as regional president for Georgia, Karl Hoefer as regional president for Louisiana and Texas, Jack Deano as chief information officer, Mike Pelletier as chief human resources officer, Agustin Ramos as chief credit officer, and Rob Worley as general counsel.

Members of the team joining MCBANK in Georgia will include Elizabeth Bresnahan, Chris Catone, Ansley Cooper, Brittany Everette, Michael Giovino, Seth Gray, Thomas Hamlin, Beth Heavern, Shamus Kenny, Jonathan Shapleigh, Cary Sullivan, and Kait Tabor.

Members of the team joining MCBANK in Louisiana will include James Berrigan, Scott Becker, Hayes Berthelot, Brandon Boudreaux, Claudia Carrere, Ben Dupuy, Harrison Frampton, Charles Gaspard, James Kock, Annie McClain, Nathan Neames, Cleland Powell, Josh Reed, Charlotte Sapir, Shelly Serigne, Pat Trahan, Tommy Westervelt, and Conny Zeagler.

Members of the team joining MCBANK in other states will include Steve Cohen in
Florida, Eve Sawyer in Texas, and Jon Shanfield in Maryland.

KBW and Performance Trust Capital Partners LLC served as co-placement agents to DMMS in the equity offering. Squire Patton Boggs (US) LLP served as legal counsel to the co-placement agents.
KBW served as financial adviser, and Troutman Pepper Locke LLP served as legal adviser to DMMS in the merger transaction and equity offering. Sterlington PLLC and Jones Walker LLP also served as legal advisors to DMMS. PT served as financial advisor, and Baker Donelson served as legal advisor to MCBI and MCBANK in the merger transaction. A fairness opinion was provided to MCBI by National Capital, LLC.