Business First Bancshares, Inc. Announces Acquisition of Waterstone LSP, LLC
Business First Bancshares, Inc. announces acquisition of Waterstone LSP, LLC, expanding its SBA lending services. The deal aims to enhance b1BANK's offerings and provide additional finance options to clients. Waterstone will operate as a subsidiary of b1BANK, offering a range of services to community banks and small businesses.
The acquisition of Waterstone LSP, LLC by Business First Bancshares, Inc. represents a strategic move to enhance the latter's service offerings in SBA loan programs. This acquisition is poised to create synergies by combining Waterstone's expertise in SBA lending with Business First's financial resources and client base. From a financial perspective, this deal could lead to increased revenue streams for Business First through expanded loan offerings and potentially higher interest income.
It's crucial to assess the financial terms of the acquisition, such as the purchase price, payment method and expected financial impact on Business First's balance sheet. Investors should monitor the post-acquisition integration process, as successful integration is key to realizing the anticipated benefits, such as cost savings from operational efficiencies and cross-selling opportunities. The deal's success will largely depend on the smooth assimilation of Waterstone's services into Business First's existing operations without disrupting customer relationships.
The merger between Business First and Waterstone is likely to have significant implications for the competitive landscape of community banking and SBA lending services. By acquiring Waterstone, Business First aims to strengthen its market position and offer more comprehensive services to small businesses. This move could potentially increase Business First's market share in the SBA lending space.
It is important to analyze the potential market response, including how competitors might react to this consolidation. The acquisition could prompt other community banks to seek similar partnerships or acquisitions to bolster their SBA lending capabilities. Additionally, the expanded geographic presence, with Waterstone headquartered in Texas, might open up new markets for Business First, potentially leading to increased customer acquisition and market penetration.
In the context of the banking industry, SBA loans are a critical tool for small businesses seeking financing. The acquisition of a specialized SBA lending service provider like Waterstone could enhance Business First's value proposition to its small business clients. By offering a more robust suite of SBA loan services, Business First can differentiate itself from competitors and potentially attract a larger clientele seeking SBA loans.
Understanding the regulatory environment surrounding SBA loans is essential, as compliance with government standards is paramount. The expertise Waterstone brings to the table in navigating these regulations can be a significant asset to Business First. Stakeholders should consider the potential long-term benefits of this acquisition, such as increased customer loyalty and improved loan performance due to Waterstone's specialized services.
02/01/2024 - 08:30 AM
BATON ROUGE, La., Feb. 01, 2024 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (Business First) (Nasdaq: BFST), the holding company for b1BANK announced today the signing of a definitive agreement to acquire Waterstone LSP, LLC (Waterstone).
Waterstone was founded in 2012 by Mark Danford and Anthony Parrino to work hand-in-hand with community banks and small business owners to implement and manage the U.S. Small Business Administration’s (SBA) loan programs.
“We have worked closely, for a number of years, with Waterstone and have been impressed with their deep understanding of both small businesses and the community banks that serve them,” said b1BANK President and CEO, Jude Melville. “With the integration of Waterstone, we look forward to more seamlessly providing SBA-focused alternatives to our core bank clients while also equipping our community bank partners around the country to more comprehensively serve their clients.”
Waterstone is headquartered in Katy, Texas and offers community banks and small businesses a range of SBA lending services including planning, pre-qualification, packaging, closing and disbursements, servicing, and liquidations.
“From inception we have been dedicated to building partnerships with our clients because they are not just another number to us. After working with the bank, it was clear to us that b1BANK has the same relationship-based approach to serving clients,” said Waterstone President and CEO, Mark Danford. “This merger will provide both teams with opportunities to expand into new markets and provide our clients with additional finance options,” said Waterstone Chief Financial Officer, Anthony Parrino.
Waterstone will operate as a subsidiary of b1BANK and will report through Chief Administrative Officer, Jerry Vascocu. “We are thrilled to welcome the Waterstone team and expand the line of products and services we offer through our Financial Institutions Group (FIG),” said Vascocu.
Alston & Bird, LLP acted as legal advisor to b1BANK, while Brunini, Grantham, Grower & Hewes, PLLC advised Waterstone.
About Business First Bancshares, Inc.
As of December 31, 2023, Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $6.6 billion in assets, $6.0 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $0.9 billion of b1BANK assets managed by SSW) and operates Banking Centers and Loan Production Offices in markets across Louisiana and the Dallas and Houston, Texas areas, providing commercial and personal banking products and services. Commercial banking services include commercial loans and letters of credit, working capital lines and equipment financing, and treasury management services. b1BANK was awarded #1 Best-In-State Bank, Louisiana, by Forbes and Statista , and is a multiyear winner of American Banker’s “Best Banks to Work For.” Visit b1BANK.com for more information.
Special Note Regarding Forward-Looking Statements
Certain statements contained in this release may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could,” or “intend.” We caution you not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors, including those factors specified in our Annual Report on Form 10-K and other public filings. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release.
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What did Business First Bancshares, Inc. announce regarding Waterstone LSP, LLC?
Business First Bancshares, Inc. announced the signing of a definitive agreement to acquire Waterstone LSP, LLC.
What are the services provided by Waterstone LSP, LLC to community banks and small businesses?
Waterstone LSP, LLC offers a range of SBA lending services including planning, pre-qualification, packaging, closing and disbursements, servicing, and liquidations.
Where is Waterstone LSP, LLC headquartered?
Waterstone LSP, LLC is headquartered in Katy, Texas.
Who will operate as a subsidiary of b1BANK after the acquisition?
Waterstone LSP, LLC will operate as a subsidiary of b1BANK.
What are the legal advisors for b1BANK and Waterstone LSP, LLC in the acquisition?
Alston & Bird, LLP acted as legal advisor to b1BANK, while Brunini, Grantham, Grower & Hewes, PLLC advised Waterstone LSP, LLC.
