Park National Corp. Makes Strategic Move into Tennessee with First Citizens Bancshares Acquisition
Park National Corp., a bank holding company based in Newark, Ohio, has announced its decision to acquire First Citizens Bancshares in Dyersburg, Tennessee. The all-stock deal is valued at $317 million and serves multiple strategic purposes for the Ohio-based bank.
Strategic Expansion into Tennessee
The acquisition is a significant move for Park National Corp., marking its entry into Tennessee’s banking market. This expansion strategically connects its branches in North Carolina and South Carolina to its core footprint in Kentucky and Ohio. Park National President Matthew Miller said, “We’ve long seen Tennessee as a compelling market and were intentional about waiting for the right opportunity to expand.”
Surpassing the $10 Billion-Asset Threshold
First Citizens Bancshares comes with $2.5 billion in assets, which will push Park National well past the $10 billion-asset threshold. This eliminates the risk of the company crossing the line organically and subsequently having to deal with increased regulatory scrutiny and reduced fee income due to the Durbin Amendment’s cap on card transaction fees. The acquisition will create a $12.5 billion-asset institution, offering substantial earnings potential to offset the Durbin impact. Park National is projecting a 15% earnings-per-share accretion in 2026.
Benefits for First Citizens Bancshares
For First Citizens Bancshares, the merger with a significantly larger institution like Park National Corp. means gaining access to more resources, including a larger legal lending limit. Jeff Agee, Chairman and CEO of First Citizens, sees this as a strategic step forward and is set to lead Park National’s new Tennessee region.
Park National’s Growth Strategy
Having hovered around the $10 billion-asset mark for five years, Park National Corp. has been keen on making strategic acquisitions to bolster its growth. Its expansion to North Carolina in 2018 through the acquisition of NewDominion Bank, followed by entry into South Carolina with the Carolina Alliance Bank deal, are indicative of its targeted growth strategy. The bank has also been keeping a close eye on Tennessee due to the state’s projected population and household income growth rates, which are expected to surpass those of Ohio.
First Citizens Bancshares’ Legacy and Growth Prospects
Established in 1889 as Citizens Bank, First Citizens Bancshares has a rich history in Tennessee. It currently holds the number-one position by deposits in its legacy Dyersburg market and is keen on further expansion. In this context, the merger with Park National Corp. is expected to considerably accelerate its growth.
With the deal expected to close in the first quarter of 2026, the future looks promising for both Park National Corp. and First Citizens Bancshares. The merger will result in a stronger, more impactful organization, enhancing customer experience, creating meaningful opportunities for employees, and extending the ability to serve more communities.
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