Georgia-based Community First Bancshares (CFBI) has agreed to buy local peer ABB Financial Group in an all-cash deal worth around $40.3m.
Under the agreement, ABB subsidiary Affinity Bank will merge into CFBI subsidiary Newton Federal Bank.
The deal is said to strengthen CFBI’s presence in the Atlanta MSA.
The merged business will have around $613m in assets, $465m in deposits and $500m in loans.
The combined group is said to be one of the 10-largest Georgia-based banks by deposits.
CFBI CEO Johnny Smith said: “Our respective management teams have spent a considerable amount of time prior to this point, studying the relative strengths and weaknesses of our banks.
“Together, we believe the strengths are enhanced and the weaknesses are diminished. I believe there will be very few Georgia community banks that will match our diverse lines of business and attractive market demographics.”
As per the agreed terms, shareholders of ABB are entitled to get $7.50 for each share held.
CFBI expects the deal to add to its 2020 earnings per share, excluding one-time merger expenses.
The deal has been already cleared by the two companies’ boards and is now pending shareholder and regulatory approvals.
Deal completion is expected in the fourth quarter of this year or the first quarter of next year.
ABB CEO Ed Cooney will serve as the CEO of CFBI and Newton Federal Bank upon deal closure.
Cooney stated: “This combination is incredibly positive for both banks’ clients, employees and shareholders.”
Smith will serve as president of CFBI and Newton Federal Bank.