ANNISTON, Ala.–(BUSINESS WIRE)–Southern States Bancshares, Inc. (“Southern States” or the “Company”),
parent of Southern States Bank (the “Bank”), today announced the signing
of a definitive merger agreement with East Alabama Financial Group, Inc.
(“East Alabama”), parent of Small Town Bank, under which Southern States
will acquire East Alabama. East Alabama shareholders will receive a mix
of Southern States stock and cash as consideration. The transaction has
been approved by the board of directors of each company, is expected to
close in the third quarter of 2019, and is subject to customary closing
conditions, including approval from the shareholders of East Alabama and
Southern States and approval of bank regulatory authorities. The
combined company will operate under the Southern States brand and have
assets in excess of $1.2 billion.
In making the announcement, Southern State’s President, Chief Executive
Officer, and Chairman of the Board, Steve Whatley said, “After spending
time with Mr. Floyd Davis and the broader Small Town Bank organization,
I am confident this merger will allow us to better serve our clients and
their communities. The common set of principles and commitment to
excellence both companies share create a powerful foundation to build a
stronger institution together. Further, Small Town Bank’s strong core
deposit funding and disciplined credit culture support our strategic
direction.”
Floyd Davis, Sr., Chairman of the Board of East Alabama, commented, “We
are thrilled to partner with an organization like Southern States that
shares our values and places customers’ interest first and foremost.
Southern States has demonstrated its strong ability to grow and we look
forward to expanding and improving our customers’ experience through
this merger.”
Southern States was advised by SunTrust Robinson Humphrey as financial
advisor and Jones Walker LLP is serving as legal counsel. East Alabama
was advised by FIG Partners as financial advisor and Maynard, Cooper &
Gale, P.C. is serving as legal counsel.
About Southern States Bancshares
Southern States Bank, the subsidiary bank of Southern States Bancshares,
is a full service, $927 million asset community bank headquartered in
Anniston, AL, offering competitive banking products and services with a
commitment to customer service and community knowledge. The Bank’s
primary service areas in Alabama are Calhoun, Lee, Jefferson, Talladega
and Madison counties and their surrounding areas plus Muscogee, Carroll
and Coweta counties in Georgia. The Bank has LPO offices in Bremen,
Georgia and Atlanta, Georgia.
About East Alabama Financial Group
Small Town Bank, the subsidiary bank of East Alabama Financial Group,
Inc., is a $241 million asset community bank headquartered in Wedowee,
AL engaged in personal and business banking. The Bank’s primary service
areas in Alabama are Randolph and Cleburne counties and Carroll and
Paulding counties in Georgia.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained herein may not be based upon historical
facts and are “forward-looking statements.” These forward-looking
statements may be identified by their reference to a future period or
periods or by the use of forward-looking terminology such as
“anticipate,” “believe,” “could,” “continue,” “seek,” “intend,”
“estimate,” “expect,” “foresee,” “hope,” “intend,” “may,” “might,”
“plan,” “should,” “predict,” “project,” “goal,” “outlook,” “potential,”
“will,” “will result,” “will likely result,” or “would” or future or
conditional verb tenses and variations or negatives of such terms. These
forward-looking statements include, without limitation, those relating
to the terms, timing and closing of the proposed merger, acceptance by
customers of Southern States Bank’s products and services, the
opportunities for Southern States Bank to enhance market share in
certain markets and market acceptance of Southern States Bank generally
in new markets.
Readers are cautioned not to place undue reliance on the forward-looking
statements contained in this new release, in that actual results could
differ materially from those indicated in such forward-looking
statements as a result of a variety of factors, many of which are beyond
the control of Southern States Bank. These factors may include, but are
not limited to, the ability of Southern States Bank and Small Town Bank
to complete the merger transaction, the ability to satisfy the
conditions to the completion of the merger transaction, including the
approval of the merger transaction by shareholders and the receipt of
all regulatory approvals required for the merger transaction on the
terms expected in the merger agreement, the ability to meet expectations
regarding the timing, completion and accounting and tax treatments of
the merger transaction, the possibility that any of the anticipated
benefits of the merger transaction will not be realized or will not be
realized as expected, the failure of the merger transaction to close for
any other reason, the possibility that the merger transaction may be
more expensive or more time consuming to complete than anticipated,
including as a result of unexpected factors or events and the impact of
all other factors generally understood to affect the assets, business,
cash flows, financial condition, liquidity, prospects and/or results of
operations of financial services companies. Forward-looking statements
speak only as of the date of this news release and, except as required
by law, neither party undertakes any obligation to update or revise
forward-looking statements to reflect events or circumstances that occur
after the date of this news release.
Contacts
Southern States Bancshares, Inc.
Lynn Joyce
SEVP and CFO
205-820-8065
[email protected]
