RIDGELAND – The merger of State Bank & Trust CO. and FirstBank of Baton Rouge has won the approval of federal regulators,bank officials were notified this week.

“We’re pleased to be expanding our banking services into thisdynamic and growing region,” said John B. Neville, CEO of StateBank. “This merger is good for both financial institutions and willallow the bank to expand its market from Baton Rouge eastward toSlidell, La., covering the rapidly growing North Shore area andbecome a part of our bank extending northward the entire length ofMississippi.”

First Bank currently operates four locations in Louisiana – twoin greater Baton Rouge, a third in Eunice and a loan productionoffice in New Roads, which soon will be converted to a full-servicebank.

State Bank operates 22 banks in Mississippi, serving marketsfrom the Memphis to McComb and also has a new commercial loanproduction office in Covington, La., which will be converted to afull-service bank in the near future.

“We’re honored and pleased to join with a bank like State Bankand Trust Co.,” said Richard M. Hollan, First Bank CEO. “Thephilosophy of our two banks is remarkably similar. Additionally,this merger will provide new banking services for our customers andsignificantly increase the commercial lending capacity of ourbank.”

State Bank officials said they expect the merger will becompleted by April 1.

Neville would not disclose the purchase price but said FirstBank’s assets exceed $100 million. Upon completion of the merger,the combined assets will approach $750 million, making the combinedbanking operation one of the top six state banks servingLouisiana.