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Georgia-based First Covenant Bank to merge with First Century Bank

Commerce, Ga.-based First Covenant Bank has agreed to merge with First Century Bank NA, a unit of Gainesville, Ga.-based First Century Bancorp.

Under the transaction, shareholders will get 0.002873 of a First Century Bancorp. common share for each First Covenant Bank common share. Based on financial analyses done by independent financial advisers of the deal parties, the consideration equates to a per-share value of $9.15 for First Covenant Bank shareholders and an aggregate transaction value of about $22 million.

The deal is expected to close in the first quarter of 2020.

Following the deal's closing, the surviving bank will remain a unit of First Century Bancorp. and continue to operate as a national bank under the name of First Century Bank NA. The consolidated bank will have pro forma total assets of about $284 million, loans of approximately $49 million and deposits of roughly $245 million.

William Blanton, chairman and CEO of First Century Bancorp. and First Century Bank, will continue as chairman and CEO of the surviving holding company and the surviving bank.

Other officers of First Century Bancorp. and First Century Bank, many of whom currently serve as First Covenant Bank officers, will also continue in their roles. First Century Bancorp.'s board is expected to consist of Blanton, four additional directors of First Century Bancorp. and three former directors of First Covenant Bank. First Century Bank's board is expected to consist of Blanton, six additional First Century Bank directors and two former directors of First Covenant Bank.

FinPro Capital Advisors Inc. provided a fairness opinion to First Century Bancorp. and First Century Bank, and Nelson Mullins Riley and Scarborough LLP are acting as their legal counsel. Janney Montgomery Scott LLC provided a fairness opinion, and Troutman Sanders LLP is acting as legal counsel to First Covenant Bank.