FB Financial and Southern States Announce Game-Changing Merger
Exciting Merger Announcement between FB Financial and Southern States
FB Financial Corporation, recognized as the parent company of FirstBank, has made significant headlines with its latest merger agreement with Southern States Bancshares, Inc. This strategic alliance aims to merge Southern States into FB Financial, paving the way for transformative growth in Alabama and Georgia's financial landscape.
A Good Fit for Growth
Southern States boasts a strong presence with 15 branches in Alabama and Georgia, strategically positioned in vibrant markets like Atlanta and Birmingham. With total assets reported at $2.8 billion and deposits of $2.4 billion, Southern States is well-equipped to enhance FB Financial’s reach as they expand their footprint in these dynamic markets.
Key Insights from Leadership
Christopher T. Holmes, FB Financial's President and CEO, expressed excitement over the merger, highlighting Southern States' commitment to customer service. He remarked on the cultural compatibility between the two entities and the potential to continue Southern States' legacy of noteworthy banking services.
Strategic Vision for the Future
Mark A. Chambers, the CEO of Southern States, shared his enthusiasm for the merger, emphasizing the advantages it brings for shareholders and customers alike. This partnership is set to enhance their service offerings, positioning the combined entity to leverage its collective talents and strengths effectively.
Details of the Merger Agreement
Under the agreement, Southern States shareholders will receive 0.800 shares of FB Financial’s common stock for each Southern States share they hold. Based on recent evaluations, this transaction values Southern States shares at approximately $37.64 each, reflecting a total value of $381 million.
Tax Advantages for Shareholders
The merger is structured to qualify as a tax-free reorganization, providing Southern States shareholders with a seamless transition into FB Financial stock without immediate tax implications, thereby offering a favorable financial setup for stakeholders.
Regulatory Approval Process
Both organizations have secured unanimous approval from their respective boards, but the merger remains contingent upon approval from regulatory bodies and shareholders. There’s optimism that the transaction will close by late 2025, creating opportunities for enhanced operational synergy.
Financial Advisors and Legal Counsel
FB Financial receives advisory services from Keefe, Bruyette, & Woods, while Southern States engages Performance Trust Capital Partners for their financial advising needs. Legal expertise is being provided by Alston & Bird LLP and Jones Walker LLP respectively.
Informing Stakeholders
FB Financial is scheduled to host a conference call to discuss this merger at the start of the next business week, inviting stakeholders to gain insights into the expected outcomes and future direction for the combined companies.
About the Combining Entities
FB Financial Corporation is a well-established bank holding company, leading through its subsidiary, FirstBank. With 77 locations across multiple states, including Alabama and Kentucky, they manage around $13.2 billion in assets. Southern States Bancshares, a similar community-oriented institution, operates significantly in Alabama and Georgia, focusing on providing comprehensive banking solutions tailored to local needs.
Frequently Asked Questions
What is the primary goal of the merger?
The merger aims to enhance service offerings and expand market presence in Alabama and Georgia, benefiting customers and shareholders.
Who will manage the combined company after the merger?
Key executives, including Mark A. Chambers and Lynn J. Joyce, will retain significant roles in the new organization.
How will the merger impact shareholders?
Southern States shareholders will receive FB Financial stock, designed to be a tax-free exchange, providing them with continued value.
What are the next steps for the merger?
The merger awaits regulatory and shareholder approvals and is expected to finalize towards the end of 2025.
What financial advisory firms are involved?
FB Financial is advised by Keefe, Bruyette, & Woods, while Southern States works with Performance Trust Capital Partners.
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