Tallahassee, Fla.-based First Commerce CU is purchasing and assuming certain assets and liabilities of Nashville, Ga.-based Citizens Bank, a unit of Nashville Holding Co.
The financial terms of the transaction were not disclosed in the news release. The deal is expected to close in the second quarter of 2020.
First Commerce CU has $620 million in assets, while Citizens Bank has about $250 million in assets. After the closing of the transaction, First Commerce CU will exceed $800 million in assets, according to the news release.
S&P Global Market Intelligence valuations for bank and thrift targets in the Southeast region between Sept. 16, 2018, and Sept. 16, 2019, averaged 158.53% of book and 169.25% of tangible book and had a median of 17.71x last-12-months earnings, on an aggregate basis.
The credit union will expand its presence in South Georgia to seven locations with the purchase of all four branches of Citizens Bank. Combined with its nine existing locations in Florida, First Commerce CU will have a total of 16 locations.
First Commerce CU will enter Berrien County, Ga., with two branches to be ranked second with a 32.21% share of approximately $290.03 million in total market deposits. It will also expand in Lowndes County, Ga., by one branch to be ranked eighteenth with a 0.91% share of approximately $2.34 billion in total market deposits, and will enter Cook County, Ga., with one branch to be ranked first with a 42.52% share of approximately $229.5 million in total market deposits.
The deal will also enable the credit union to expand in Lowndes County, Ga., by one branch to be ranked no. 18 with a 0.91% share of approximately $2.34 billion in total market deposits.
Bill Perry, president of Citizens Bank, will work with First Commerce CU as a strategic adviser during the transition. Steve Perry will join First Commerce CU as market president, overseeing all services in the South Georgia locations. First Commerce CU intends to retain all Citizens Bank employees.
Hunton Andrews Kurth LLP was legal counsel and Skyway Capital Markets LLC was financial adviser to First Commerce CU. Citizens Bank was advised by Alston & Bird LLP.
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