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NC-based First-Citizens Bank to acquire Georgia's Community Financial Holding

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NC-based First-Citizens Bank to acquire Georgia's Community Financial Holding

Raleigh, N.C.-headquartered First-Citizens Bank & Trust Co. has agreed to acquire Duluth, Ga.-based Community Financial Holding Co. Inc. for $2.3 million in cash.

Community Financial unit Gwinnett Community Bank will become part of First-Citizens Bank upon deal completion. First Citizens BancShares Inc. is First-Citizens Bank's ultimate parent.

S&P Global Market Intelligence calculates the deal value to be 2.2x earnings, on an aggregate basis. The deal value is also 1.04% of assets and 1.13% of deposits, and the tangible book premium-to-core deposits ratio is 4.48%.

S&P Global Market Intelligence valuations for bank and thrift targets in the Southeast region between Sept. 24, 2018, and Sept. 24, 2019, averaged 156.89% of book and 167.76% of tangible book and had a median of 18.09x last-12-months earnings, on an aggregate basis.

The transaction is anticipated to close in the first quarter of 2020, subject to the receipt of regulatory approvals and the approval of Community Financial shareholders.

As of June 30, Community Financial reported $223 million in consolidated assets, $206 million in deposits and $146 million in gross loans. First-Citizens Bank had total assets of $37.6 billion as of the same date.

With the completion of the deal, First Citizens BancShares will expand in Gwinnett County, Ga., by three branches to be ranked No. 12 with a 2.1% share of approximately $17.72 billion in total market deposits, according to S&P Global Market Intelligence data.

Sandler O'Neill & Partners LP acted as financial adviser and rendered a fairness opinion to Community Financial. Ward and Smith PA represented First-Citizens Bank, and James-Bates-Brannan-Groover-LLP represented Community Financial.

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