Combined Company Positioned become a top Efficiency lender with more or less $34 Billion in Assets Serving 18 High development areas in six Southeastern States
Merger Creates the 8th premier Bank Headquartered within the Southeast
Economically Combination that is compelling for Businesses’ Investors
Combines Two Low-Cost Deposit Bases with Over One Million Customers and a Well placed Branch Network from Florida through Virginia
COLD TEMPERATURES HAVEN, Fla. & COLUMBIA, S.C. –(BUSINESS WIRE)– CenterState Bank Corporation (NASDAQ: CSFL) (“CenterState”), the moms and dad business of CenterState Bank, and Southern State Corporation (NASDAQ: SSB) (“South State”), the moms and dad company of Southern State Bank, jointly established today they own entered right into a definitive contract under that your businesses will combine in a all-stock merger of equals with a total market value of roughly $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 number one Southeast bank that is regional. (picture: company Wire)
beneath the regards to the merger contract, that has been unanimously authorized by the panels of Directors of both businesses, CenterState investors will get 0.3001 stocks of Southern State typical stock for each share of CenterState typical stock they own. CenterState investors will have more or less 53% and Southern State investors will have more or less 47% for the combined business.
The combined business shall run beneath the Southern State Bank title and can trade underneath the Southern State ticker sign SSB from the Nasdaq currency markets. The business is supposed to be headquartered in Winter Haven, Florida and certainly will keep a presence that is significant Columbia and Charleston, sc; Charlotte, vermont; and Atlanta, Georgia.
Robert R. Hill, Jr., CEO of Southern State, will act as Executive Chairman associated with the combined business. John C. Corbett, CEO of CenterState, will likely to be CEO for the combined business. The Board of Directors for 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 actually great respect for John, the administration group and also the company CenterState has generated. This can be a great mix of countries, that will produce value that is tremendous our investors. ”
“We have actually known and admired Robert along with his group for more than 10 years, therefore we think our two businesses are a fit that is outstanding” said John C. Corbett, CEO of CenterState. “Combining those two teams that are high-performing let us build a level more powerful business together. ”
Strategically Compelling both for Companies
- Improved Scale to push Growth and Improve Profitability: The pro forma organization, with roughly $34 billion in assets and $26 billion in deposits, combines two top-quality businesses with comparable credit and administration philosophies.
- Strengthens Both organizations: This merger combines two highly respected administration teams running complementary company lines. Moreover it diversifies the geographies of every business in to a contiguous six-state impact, spanning from Florida to Virginia.
- Combines Two Strong Core Deposit Franchises and High-Quality Loan Portfolios: The combined company can benefit through the mix of two low-cost deposit that is core-funded and top-quality loan portfolios, providing a well balanced way to obtain funds and clients.
- High-Growth areas: the corporation has areas in 10 for the 15 fastest growing Metropolitan Statistical Areas (MSAs) into the Southeast and certainly will have a pro forma deposit-weighted populace development of 6%. The combined business may have a presence in seven for the ten many populous areas in the Southeast.
- Experienced and Compatible Management Teams: The administration groups associated with two businesses have considerable experience and run with really comparable philosophies and values. Each administration team has effectively finished mergers that are numerous purchases as well as the subsequent integrations of systems and groups.
Economically metrics that are attractive Shareholders
- Immense Earnings Per Share Accretion: The transaction is projected to supply more than 20% EPS accretion to South State as soon as expense saves are fully phased in, with just minimal book that is tangible dilution and a TBVPS earnback amount of not as much as twelve months.
- Cost Synergies: the businesses have actually identified $80 million in expected annual cost that is net completely phased in by 2022, representing around 10% of projected 2020 combined non-interest costs.
- Leading professional Forma Profitability: On a professional forma foundation, the combined business is anticipated to produce profitability that is robust.
The merger will combine the management that is executive from both companies. The executive team of the combined company will include three members from try here each legacy company in addition to Robert Hill, Executive Chairman, and John Corbett, CEO.
CenterState Leadership
Will Matthews, Chief Financial Officer
Steve Younger, Chief Strategy Officer
Richard Murray, President
South 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 investors of each and every business.
Deal Advisors
Piper Sandler & Co. Served as monetary consultant to Southern State, with Wachtell, Lipton, Rosen & Katz serving as appropriate advisor.
Keefe, Bruyette & Woods, A Stifel business, served as monetary consultant to CenterState, with Davis Polk & Wardwell LLP serving as appropriate consultant.
Joint Investor Conference Call
You will have a joint seminar call to talk about the transaction at 8:30 a.m. Today eastern Time. To be controlled by the call that is live please dial 877-506-9272 in the U.S. And 412-380-2004 for many other locations and go into the participant rule 10138864. The real time webcast, combined with the relevant presentation, will likely be available regarding the investor relations part 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 gain access to the replay, dial 877-344-7529 and make use of meeting quantity 10138864. Overseas callers should dial 412-317-0088 and enter the exact same meeting quantity. This replay, plus the webcast, are going to be available through February 10, 2020 at 9:00 a.m. Eastern Time.
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