Southern States Bancshares in Anniston, Ala., has agreed to buy CBB Bancorp in Cartersville, Ga.
The $2.5 billion-asset Southern States said in a press release that it will pay $27 million in cash and stock for the parent of the $310 million-asset Century Bank of Georgia. The deal, which is expected to close in the third quarter, priced CBB at 126% of its tangible book value.
Southern States said about 48% of its deposits would be in Georgia after the deal closes. Century Bank has two branches, $130 million of loans and $290 million of deposits.
The acquisition “will bolster our presence in Georgia and align perfectly with our strategic plan of pursuing disciplined M&A in high-growth markets,” Mark Chambers Southern States’ president and CEO, said in the release.
“We believe Century Bank’s solid core deposit base and strong liquidity position will further strengthen the combined bank’s balance sheet and enhanced franchise value,” Chambers added.
Richard Drews Jr., Century Bank’s CEO, will join Southern States’ board.
The deal is expected to be 27% accretive to Southern States’ earnings per share. It should take two to three years for the company to earn back an estimated 8% dilution to tangible book value.
Southern States’ plans to cut $6.1 million in expenses, or roughly 30% of Century Bank’s annual operating costs. The company expects to incur about $6 million of pretax merger-related expenses.
Keefe, Bruyette & Woods and Jones Walker advised Southern States. Performance Trust Capital Partners and Troutman Pepper Hamilton Sanders advised Century Bank.