06:31 AM EDT, 04/26/2024 (MT Newswires) -- Business First Bancshares ( BFST ) ) said Thursday it has agreed to purchase Oakwood Bancshares and its Oakwood Bank subsidiary in an all-stock transaction valued at about $85.7 million.

The boards of directors of Business First and Oakwood have unanimously approved the proposed transaction, expected to close in Q4 subject to Oakwood shareholder approval and other customary conditions and regulatory approvals.

Following the closing of the deal, former Oakwood shareholders will own approximately 13.5 percent of the combined company.

Once completed, the acquisition will add six new Texas branches to the network of Business First subsidiary b1Bank and increase the company's consolidated assets to around $7.4 billion, with over $5.6 billion in total loans.

Oakwood Chief Executive Roy J. Salley will join b1BANK as regional chairman for Dallas.