Combined Company Positioned become a top Efficiency standard bank with around $34 Billion in Assets Serving 18 High development areas in six Southeastern States
Merger produces the Largest that is 8th Bank when you look at the Southeast
Economically Combination that is compelling for Businesses’ Shareholders
Combines Two Low-Cost Deposit Bases with Over One Million Customers and a Well placed Branch system from Florida through Virginia
COLD WEATHER HAVEN, Fla. & COLUMBIA, S.C. –(COMPANY WIRE)– CenterState Bank Corporation (NASDAQ: CSFL) (“CenterState”), the moms and dad business of CenterState Bank, and Southern State Corporation (NASDAQ: SSB) (“South State”), the moms and dad company of Southern State Bank, jointly established today they have entered into a definitive contract under that your businesses will combine within an all-stock merger of equals with a complete market value of around $6 billion to create a respected Southeastern-based local bank.
(L-R) Robert R. Hill, Jr., Southern State Corporation CEO, and John C. Corbett, CEO of CenterState Bank, have actually established a merger of equals to create a number one Southeast local bank. (picture: company Wire)
Under the regards to the merger contract, that has been unanimously authorized because of the panels of Directors of both organizations, CenterState investors will get 0.3001 stocks of Southern State stock that is common each share of CenterState typical stock they possess. CenterState investors will possess roughly 53% and South State investors will have about 47% of this combined company.
The combined business shall run beneath the Southern State Bank name and certainly will trade under the Southern State ticker sign SSB from the Nasdaq currency markets. The business is likely to be headquartered in Winter Haven, Florida and can keep a significant existence in Columbia and http://speedyloan.net/reviews/maxlend Charleston, South Carolina; Charlotte, vermont; and Atlanta, Georgia.
Robert R. Hill, Jr., CEO of Southern State, will act as Executive Chairman of this combined business. John C. Corbett, CEO of CenterState, would be CEO for the combined business. The Board of Directors regarding the combined business will contain sixteen directors evenly split between your two legacy businesses.
“We are excited to partner with CenterState, ” said Robert R. Hill, Jr. “We have actually great respect for John, the administration group and also the company CenterState has generated. This really is an excellent mix of countries, that may produce value that is tremendous our investors. ”
“We have actually known and admired Robert and their group for over ten years, and we also think our two companies are an outstanding fit, ” said John C. Corbett, CEO of CenterState. “Combining those two teams that are high-performing let us build a straight more powerful business together. ”
Strategically Compelling both for Businesses
- Improved Scale to push Growth and Improve Profitability: The pro forma organization, with roughly $34 billion in assets and $26 billion in deposits, combines two companies that are high-quality comparable credit and administration philosophies.
- Strengthens Both businesses: This merger combines two highly respected administration teams running business that is complementary. It diversifies the geographies of every business into a contiguous six-state impact, spanning from Florida to Virginia.
- Combines Two Strong Core Deposit Franchises and High-Quality Loan Portfolios: The combined business may benefit through the mixture of two low-cost deposit that is core-funded and top-notch loan portfolios, supplying a well balanced supply of funds and clients.
- High-Growth areas: the business could have areas in 10 associated with the 15 quickest growing Metropolitan Statistical Areas (MSAs) within the Southeast and can have a pro forma population that is deposit-weighted of 6%. The combined business may have an existence in seven regarding the ten many markets that are populous the Southeast.
- Experienced and Compatible Management Teams: The administration groups associated with two businesses have actually substantial experience and run with really philosophies that are similar values. Each administration group has effectively finished many mergers and purchases and also the subsequent integrations of systems and groups.
Economically metrics that are attractive Shareholders
- Immense Earnings Per Share Accretion: The deal is projected to provide more than 20% EPS accretion to South State as soon as expense saves are fully phased in, with just minimal book that is tangible dilution and a TBVPS earnback amount of not as much as 12 months.
- Cost Synergies: the businesses have actually identified $80 million in anticipated yearly cost that is net completely phased in by 2022, representing more or less 10% of projected 2020 combined non-interest costs.
- Leading professional Forma Profitability: On a professional forma foundation, the combined business is anticipated to provide robust profitability metrics.
The merger will combine the executive administration groups from both companies. The executive team of the combined company will include three members from each legacy company in addition to Robert Hill, Executive Chairman, and John Corbett, CEO.
Will Matthews, Chief Financial Officer
Steve Younger, Chief Strategy Officer
Richard Murray, President
Southern State Leadership
Renee Brooks, Chief Working Officer
Greg Lapointe, Chief Banking Officer
John Pollok, SEVP & Board Member
Approval and Timing
The merger is expected to shut when you look at the quarter that is third of, susceptible to satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval because of the investors of every business.
Piper Sandler & Co. Served as economic consultant to Southern State, with Wachtell, Lipton, Rosen & Katz serving as appropriate consultant.
Keefe, Bruyette & Woods, A Stifel business, served as economic consultant to CenterState, with Davis Polk & Wardwell LLP serving as appropriate consultant.
Joint Investor Conference Call
You will have a conference that is joint to go over the deal at 8:30 a.m. Today eastern Time. To hear the live call, please dial 877-506-9272 inside the U.S. And 412-380-2004 for several other places and go into the participant rule 10138864. The webcast that is live along with the relevant presentation, is supposed to be available regarding the investor relations part of each company’s web site at https: //www. Southstatebank.com/ and https: //www. Centerstatebank.com/. A replay that is audio be accessible start at 2:00 p.m. Eastern Time on January 27, 2020. To gain access to the replay, dial 877-344-7529 and make use of meeting quantity 10138864. Overseas callers should dial 412-317-0088 and enter the exact same meeting quantity. This replay, along with the webcast, should be available through February 10, 2020 at 9:00 a.m. Eastern Time.
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