State Bank Financial Corporation and S Bankshares, Inc. Announce Definitive Merger Agreement
OREANDA-NEWS. State Bank Financial Corporation (NASDAQ:STBZ), the holding company for State Bank and Trust Company, and S Bankshares, Inc. announced today the signing of a definitive agreement for State Bank Financial to acquire S Bankshares and its wholly-owned subsidiary, S Bank, in a cash and stock transaction with a purchase price of approximately $11 million on a fully diluted basis, or $56.70 per share.
At March 31, 2016, S Bankshares had total assets of approximately $109 million, total loans of approximately $79 million, total deposits of approximately $95 million, and total shareholder’s equity of approximately $11 million. S Bank has banking operations in Savannah, Glennville, Reidsville, and Hinesville, Georgia.
State Bank and Trust CEO Tom Wiley said, “The port city of Savannah is one of Georgia’s most dynamic markets. Having lived and banked there for more than seventeen years, I believe we can utilize the S Bank platform as a launching pad for building something special.”
Mark Smith, Chairman of S Bank, added, “Tom Wiley and Joe Evans have a long history of banking success in Savannah and delivering returns for Savannah investors, myself included. Our board is very pleased to be going into business with them. This merger will be both financially rewarding to S Bank shareholders and good for our community.”
The transaction is expected to be 2% accretive to 2017 earnings per share and approximately 0.3% dilutive to tangible book value per share with an earn-back period of less than two years. The transaction structure provides for shareholders of S Bankshares to elect between cash and stock subject to a minimum of 50% and a maximum of 60% total stock consideration.
The merger agreement has been approved by the Boards of Directors of both companies and is anticipated to close in the third quarter of 2016. Completion of the transaction is subject to certain closing conditions, including customary regulatory approvals and the approval by the shareholders of S Bankshares. Upon closing of the transaction, S Bankshares will merge into State Bank Financial, immediately followed by the merger of S Bank into State Bank and Trust.
S Bankshares was represented in this transaction by Banks Street Partners, LLC as financial advisor and Womble Carlyle Sandridge & Rice, LLP as legal counsel. State Bank Financial was represented by Nelson Mullins Riley & Scarborough LLP as legal counsel.
About State Bank Financial Corporation
State Bank Financial Corporation (NASDAQ:STBZ), with approximately $3.5 billion in assets as of March 31, 2016, is an Atlanta-based bank holding company for State Bank and Trust Company. State Bank operates 26 banking offices in Metro Atlanta, Middle Georgia and Augusta, Georgia, and seven mortgage origination offices.