Skyline Bankshares in Independence, Va., has agreed to buy Johnson County Bank in Mountain City, Tenn.
The $1 billion-asset Skyline will pay $25 million in cash for the $152 million-asset Johnson County Bank. The deal is expected to close in the second half of this year.
“This strategic move is not only rooted in our shared values but also aligns with our growth objectives, presenting an exceptional opportunity to enhance our service to the local communities,” Blake Edwards, Skyline’s president and CEO, said in a press release.
“We are excited to bring our commitment to excellence and dedication to the businesses and people of Johnson County,” Edwards added. “Together, we look forward to creating a positive impact in Tennessee while continuing to offer an unmatched customer experience in our existing markets.”
The transaction is expected to be immediately accretive to Skyline’s estimated earnings before one-time costs. It will take two to three years for the company to earn back any dilution to tangible book value.
Christopher Reece, Johnson County Bank’s CEO, will join Skyline’s board.
Raymond James and Williams Mullen advised Skyline. Olsen Palmer and Luse Gorman advised Johnson County Bank.