BancorpSouth pens deal to buy Texas insurance firm

BancorpSouth Inc. (NYSE: BXS) has signed a definitive agreement to purchase the assets of a Texas insurance firm with $9 million in annual revenue.

The news spurred shares to a 52-week high yesterday of $24.89. Shares of the the Tupelo, Miss.-based bank holding company, which operates six BancorpSouth branches in Springfield, were trading at $24.80 as of 9 a.m. Its 52-week low is $14.05.

The deal would add Houston, Texas-based GEM Insurance Agencies LP to BancorpSouth's insurance division. The transaction, the terms of which are undisclosed, is expected to close by the end of the year, according to a news release.

As part of the deal, BancorpSouth Insurance Services Inc. will relocate its existing Houston office into GEM's current office in the Texas city. Combined operations are expected to produce $11 million in annual revenue.

“The GEM acquisition gives us an opportunity to enhance our presence significantly and expand our platform in a high-growth market,” BancorpSouth CEO Dan Rollins said in the release. “GEM’s growth strategy, operating structure and customer-based focus are similar to our operations in Houston and across our footprint."

For the third quarter ended Sept. 30, BancorpSouth reported earnings of $24.9 million, a 4.3 percent increase the same quarter a year before.