Southern State and Center State to mix in Merger of Equals to generate Southeast Regional that is leading Bank
Combined Company Positioned become a top Efficiency standard bank with about $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 Compelling Combination both for Businesses’ Investors
Combines Two Low-Cost Deposit Bases with Over One Million Customers and a Well placed Branch system from Florida through Virginia
COLD TEMPERATURES HAVEN, Fla. & COLUMBIA, S.C. –(COMPANY WIRE)– CenterState Bank Corporation (NASDAQ: CSFL) (“CenterState”), the parent business of CenterState Bank, and Southern State Corporation (NASDAQ: SSB) (“South State”), the moms and dad business of Southern State Bank, jointly established today they have entered right into a definitive contract under that your organizations will combine within an all-stock merger of equals with an overall total market worth of around $6 billion to create a number one 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 respected Southeast local bank. (picture: Business Wire)
beneath the regards to the merger contract, that was unanimously approved because of the panels of Directors of both businesses, 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 acquire about 53% and Southern State investors will obtain around 47% associated with the combined business.
The combined business shall run beneath the South State Bank title and can trade beneath the Southern State ticker sign SSB regarding the Nasdaq stock exchange. The organization may be headquartered in Winter Haven, Florida and certainly will keep an important existence in Columbia and Charleston, sc; Charlotte, new york; and Atlanta, Georgia.
Robert R. Hill, Jr., CEO of Southern State, will act as Executive Chairman for the combined business. John C. Corbett, CEO of CenterState, are going to be CEO regarding the combined business. The Board of Directors associated with the combined business will contain sixteen directors evenly split involving the two legacy businesses.
“We are excited to partner with CenterState, ” said Robert R. Hill, Jr. “We have great respect for John, the administration group plus the company CenterState has generated. This really is a fantastic mixture of countries, that may create value that is tremendous our investors. ”
“We have actually known and admired Robert and their group for over 10 years, therefore we believe our two companies can be an outstanding fit, ” said John C. Corbett, CEO of CenterState. “Combining both of these high-performing groups will let us build a much stronger business together. ”
Strategically Compelling for Both Businesses
- Improved Scale to push Growth and Improve Profitability: The pro forma company, with roughly $34 billion in assets and $26 billion in deposits, combines two high-quality organizations with comparable credit and administration philosophies.
- Strengthens Both organizations: This merger combines two highly respected administration teams running business that is complementary. Additionally diversifies the money mutual geographies of each and every company as a contiguous six-state impact, spanning from Florida to Virginia.
- Combines Two Strong Core Deposit Franchises and High-Quality Loan Portfolios: The combined company may benefit through the mix of two low-cost core-funded deposit bases and top-quality loan portfolios, supplying a well balanced supply of funds and clients.
- High-Growth areas: the business could have places in 10 regarding the 15 quickest growing Metropolitan Statistical Areas (MSAs) into the Southeast and can have a pro forma deposit-weighted populace development 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 regarding the two businesses have actually substantial experience and run with really philosophies that are similar values. Each administration team has successfully finished many mergers and purchases therefore the subsequent integrations of systems and groups.
Economically Attractive Metrics for Shareholders
- Immense Earnings Per Share Accretion: The deal is projected to provide more than 20% EPS accretion to South State when cost saves are fully phased in, with reduced concrete guide value dilution and a TBVPS earnback period of not as much as twelve months.
- Cost Synergies: the businesses have 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 basis, the combined business is anticipated to provide robust profitability metrics.
The merger will combine the management that is executive from both businesses. Along with Robert Hill, Executive Chairman, and John Corbett, CEO, the executive group of this combined business should include three users from each legacy business.
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 anticipated to shut into the 3rd quarter of 2020, at the mercy of satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval because of the shareholders of each and every business.
Piper Sandler & Co. Served as economic consultant to Southern State, with Wachtell, Lipton, Rosen & Katz serving as appropriate advisor.
Keefe, Bruyette & Woods, A Stifel Company, 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 talk about the deal at 8:30 a.m. Eastern Time today. To hear the real time call, please dial 877-506-9272 inside the U.S. And 412-380-2004 for many other places and go into the participant rule 10138864. The webcast that is live combined with the relevant presentation, will undoubtedly be available regarding the investor relations portion of each company’s web site at https: //www. Southstatebank.com/ and https: //www. Centerstatebank.com/. A sound replay will be accessible start at 2:00 p.m. Eastern Time on January 27, 2020. To get into the replay, dial 877-344-7529 and make use of seminar quantity 10138864. Overseas callers should dial 412-317-0088 and go into the exact same seminar quantity. This replay, plus the webcast, would be available through February 10, 2020 at 9:00 a.m. Eastern Time.
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