Southern State and Center State to mix in Merger of Equals to produce Leading Southeast Regional Bank

Southern State and Center State to mix in Merger of Equals to produce Leading Southeast Regional Bank

by Ronald Mcrogers

Southern State and Center State to mix in Merger of Equals to produce Leading Southeast Regional Bank

Combined Company Positioned become a higher Efficiency standard bank with more or less $34 Billion in Assets Serving 18 High development areas in six Southeastern States

Merger produces the Largest that is 8th Bank when you look at the Southeast

Economically Compelling Blend both 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 WEATHER HAVEN, Fla. & COLUMBIA, S.C. –(COMPANY 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 business of Southern State Bank, jointly established today they own entered right into a definitive contract under that the organizations will combine within an all-stock merger of equals with an overall total market value of roughly $6 billion to create a respected 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 prominent Southeast bank that is regional. (picture: company Wire)
beneath the regards to the merger agreement, which was unanimously authorized because of the panels of Directors of both organizations, CenterState investors will get 0.3001 stocks of Southern State typical stock for each share of CenterState typical stock they possess. CenterState investors will possess more or less 53% and Southern State investors will acquire roughly 47% of this combined business.

The combined business will run underneath the Southern State Bank title and can trade underneath the Southern State ticker icon SSB regarding the Nasdaq stock exchange. The business may be headquartered in Winter Haven, Florida and can keep an important existence in Columbia and Charleston, South Carolina; Charlotte, new york; and Atlanta, Georgia.

Robert R. Hill, Jr., CEO of Southern State, will act as Executive Chairman regarding the combined business. John C. Corbett, CEO of CenterState, is going to be CEO regarding the combined business. The Board of Directors associated with the combined business will include sixteen directors evenly split amongst the two legacy organizations.

“We are excited to partner with CenterState, ” said Robert R. Hill, Jr. “We have actually great respect for John, the administration group therefore the company CenterState has generated. That is a great mix of cultures, that will create value that is tremendous our shareholders. ”

“We have known and admired Robert and their group for over a ten years, therefore we think our two companies 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 company together. ”

Strategically Compelling for Both Businesses

  • Enhanced Scale to push Growth and Improve Profitability: The pro forma company, with around $34 billion in assets and $26 billion in deposits, combines two top-notch 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 into 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 business can benefit through the mix of two low-cost core-funded deposit bases and top-quality loan portfolios, supplying a stable supply of funds and clients.
  • High-Growth areas: the business could have places in 10 regarding the 15 quickest growing Metropolitan Statistical Areas (MSAs) when you look at the Southeast and can have a pro forma deposit-weighted populace development of 6%. The combined business may have an existence in seven associated with the ten many markets that are populous the Southeast.
  • Experienced and Compatible Management Teams: The management groups associated with the two organizations have actually extensive experience and operate with really comparable philosophies and values. Each administration group has effectively completed many mergers and purchases plus 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 when expense saves are fully phased in, with just minimal book that is tangible dilution and a TBVPS earnback amount of not as much as 12 months.
  • Cost Synergies: the firms have actually identified $80 million in anticipated yearly cost that is net completely phased in by 2022, representing more or less 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 administration groups from both businesses. The executive team of the combined company will include three members from 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

Southern 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 quarter that is third of, at the mercy of satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval because of the shareholders of each and every business.

Deal Advisors

Piper Sandler & Co. Served as financial consultant to Southern State, with Wachtell, Lipton, Rosen & Katz serving as appropriate consultant.
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 go over the transaction at 8:30 a.m. Eastern Time today. To hear the call that is live please dial 877-506-9272 in the U.S. And 412-380-2004 for many other places and enter the participant rule 10138864. The real time webcast, combined with the relevant presentation, is going to be available regarding the investor relations element 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. cash central review Eastern Time on January 27, 2020. To gain access to the replay, dial 877-344-7529 and employ seminar quantity 10138864. Global callers should dial 412-317-0088 and enter the exact same meeting quantity. This replay, plus the webcast, is supposed to be available through 10, 2020 at 9:00 a. M february. Eastern Time.
To learn more and an email from our CEOs please go to BankingForward.com

Ronald Mcrogers

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