South Atlantic Bancshares, Inc. to Acquire Atlantic Bancshares, Inc.
Thursday, December 14th, 2017
South Atlantic Bancshares, Inc., parent of South Atlantic Bank, announced the signing of a definitive merger agreement with Atlantic Bancshares, Inc., parent of Atlantic Community Bank, under which South Atlantic will acquire Atlantic Bancshares. The transaction is expected to close by April 30, 2018, and is subject to customary closing conditions, including approval from Atlantic Bancshares' shareholders and bank regulatory authorities.
In making the announcement, South Atlantic Chairman and Chief Executive Officer K. Wayne Wicker said, "The addition of Atlantic Community Bank's offices in Bluffton and Hilton Head is a natural extension of South Atlantic Bank's geographic footprint, which will span 330 miles of the South Carolina coast after the merger is completed. The two companies fit well together, as Atlantic Bancshares shares our community banking philosophy that values strong credit quality, sound banking practices, and exemplary customer service. We look forward to serving the communities of Bluffton and Hilton Head Island."
After the merger is completed, the combined company will operate under the South Atlantic Bank brand, have nine offices serving coastal South Carolina's most desirable markets, and have assets in excess of $600 million. Based on September 30, 2017 financials, the combined company will have total loans of $488 million and total deposits of $541 million.
"We have found a strong partner for the future in South Atlantic Bank," said Robert L. McKinney, President and Chief Executive Officer of Atlantic Bancshares. "Our customers will benefit from being part of a larger institution through an increased legal lending limit, more diversified product offerings, and a continued focus on technology solutions in banking. Best of all, their relationships with the bankers they've worked with in the past will continue unchanged as we become part of the South Atlantic Bank team."
Under the merger agreement, Atlantic Bancshares shareholders holding Atlantic Bancshares common stock and Atlantic Bancshares Series AAA preferred stock will receive 0.2452 shares of South Atlantic common stock for each share exchanged. The transaction is valued at $18.1 million based on the closing price of South Atlantic common stock on Friday, December 8.
With its headquarters in Myrtle Beach, South Atlantic expanded its geographic footprint to seven locations via de novo branching; the proposed merger with Atlantic Bancshares is South Atlantic's first addition of offices by acquisition.
FIG Partners, LLC served as financial advisor to South Atlantic and Hunton & Williams LLP acted as legal counsel for the company. Banks Streets Partners served as financial advisor to Atlantic Bancshares and Bryan Cave LLP served as legal counsel for the company.