Southern State and Center State to mix in Merger of Equals to generate Southeast Regional that is leading Bank

Posted on: maj 26th, 2020 by Webmaster

Combined Company Positioned become a top Efficiency standard bank with around $34 Billion in Assets Serving 18 High development Markets in six states that are southeastern

Merger Creates the 8th premier Bank Headquartered when you look at 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 system from Florida through Virginia

COLD WEATHER HAVEN, Fla. & COLUMBIA, S.C. –(COMPANY WIRE)– CenterState Bank Corporation (NASDAQ: CSFL) (“CenterState”), the moms and dad company of CenterState Bank, and Southern State Corporation (NASDAQ: SSB) (“South State”), the moms and dad business of South State Bank, jointly established today they own entered as a definitive contract under that your organizations will combine in a all-stock merger of equals with a complete market worth of around $6 billion to create a respected Southeastern-based bank that is regional.

(L-R) Robert R. Hill, Jr., South 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 by the Boards of Directors of both businesses, CenterState shareholders will get 0.3001 stocks of Southern State typical stock for each share of CenterState typical stock they have. CenterState investors will acquire roughly 53% and Southern State investors will acquire around 47% for the combined business.

The combined business shall run beneath the Southern State Bank title and can trade underneath the Southern State ticker icon SSB in the Nasdaq stock exchange. The business should be headquartered in Winter Haven, Florida and can keep an important presence in Columbia and Charleston, sc; Charlotte, new york; 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 undoubtedly be CEO associated with the combined business. The Board of Directors regarding the combined business will contain sixteen directors evenly split between your two legacy organizations.

“We are excited to partner with CenterState, ” said Robert R. Hill, Jr. “We have actually great respect for John, the management group together with company CenterState has generated. That is an excellent mix of cultures, that will produce tremendous value for our investors. ”

“We have actually known and admired Robert and their group for over a ten years, so we think our two businesses are an outstanding fit, ” said John C. Corbett, CEO of CenterState. “Combining those two teams that are high-performing let us build a straight more powerful business together. ”

Strategically Compelling both for Organizations

  • 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 companies that are high-quality comparable credit and administration philosophies.
  • Strengthens Both businesses: This merger combines two highly respected administration teams running business that is complementary. It diversifies the geographies of each and every business as a contiguous footprint that is six-state spanning from Florida to Virginia.
  • Combines Two Strong Core Deposit Franchises and High-Quality Loan Portfolios: The combined company can benefit through the mixture of two low-cost core-funded deposit bases and top-notch loan portfolios, supplying a reliable supply of funds and clients.
  • High-Growth Markets: the company may have locations in 10 regarding the 15 quickest growing Metropolitan Statistical Areas (MSAs) into the Southeast and certainly will have a pro forma population that is deposit-weighted of 6%. The combined business may have an existence in seven regarding the ten most populous areas in the Southeast.
  • Experienced and Compatible Management Teams: The administration groups associated with two organizations have actually substantial experience and run with really philosophies that are similar values. Each management group has effectively finished mergers that are numerous purchases in addition to subsequent integrations of systems and groups.

Economically Appealing Metrics for Shareholders

  • Immense Earnings Per Share Accretion: The deal is projected to supply more than 20% EPS accretion to South State as soon as expense saves are fully phased in, with reduced book that is tangible dilution and a TBVPS earnback amount of not as much as 12 months.
  • Cost Synergies: the businesses have actually identified $80 million in anticipated yearly cost that is net completely phased in by 2022, representing about 10% of projected 2020 combined non-interest costs.
  • Leading professional Forma Profitability: On a professional forma foundation, the combined business is anticipated to provide robust profitability metrics.

The merger will combine the executive management groups from both companies. As well as Robert Hill, Executive Chairman, and John here are the findings Corbett, CEO, the executive group of this combined business includes three users from each legacy company.

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 close into the quarter that is third of, susceptible to satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval by the investors of each and every business.

Deal Advisors

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 joint seminar call to talk about the deal at 8:30 a.m. Eastern Time today. To be controlled by the call that is live please dial 877-506-9272 inside the U.S. And 412-380-2004 for several other places and go into the participant rule 10138864. The webcast that is live combined with relevant presentation, will undoubtedly be available from the investor relations part of each company’s website at https: //www. Southstatebank.com/ and https: //www. Centerstatebank.com/. A replay that is audio 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. Global callers should dial 412-317-0088 and go into the conference number that is same. This replay, plus the webcast, may be available through February 10, 2020 at 9:00 a.m. Eastern Time.
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