Southern States Bancshares Inc. and CBB Bancorp are merging, with the transaction to close in the third quarter of 2024, subject to regulatory approval.
Anniston-headquartered Southern States Bancshares is the holding company of Southern States Bank, while Cartersville, Georgia-headquartered CBB Bancorp is the holding company for Century Bank of Georgia. All Century Bank branches will change their name to Southern States after the acquisition is complete.
After the completion of the acquisition, Southern States Bank will have $2.8 billion in assets, $2.3 billion in deposits and $2.0 billion in loans. It will also have 15 full-service branches and two loan production offices in Alabama and Georgia, with 48% of its deposits in Georgia and an increased presence in the Atlanta metro market.
“The compelling merger with Century Bank will bolster our presence in Georgia and align perfectly with our strategic plan of pursing disciplined M&A in high growth markets,” said Mark Chambers, president and CEO of Southern States. “We believe Century Bank’s solid core deposit base and strong liquidity position will further strengthen the combined bank’s balance sheet and enhanced franchise value. Century Bank is a like-minded, community-oriented franchise with a team of well-respected bankers, and we firmly believe that a partnership of our two companies will create value for our combined customers, employees and stakeholders.”
Richard Drews Jr., CEO of Century Bank of Georgia, added, “We are proud to be joining Southern States’ team and culture of prudent growth and exceptional customer service. This partnership will allow the combined company to more effectively capitalize on the economic momentum we see in the local communities of Georgia that we serve.”
Subject to terms of the merger, CBB Bancorp shareholders have the right to elect to receive either 1.550 shares of Southern States common stock or $45.63 in cash for each share of CBB Bancorp common stock they hold. Shareholder elections for cash are subject to proration so that no more than 10% of the Century Bank common shares outstanding will receive the cash consideration. The exchange ratio is fixed, meaning that the transaction value will fluctuate as a result of changes in the Southern States’ stock price. Based on Southern States’ stock price of $24.24 as of February 27, 2024, the implied value per share is $38.38 and aggregate transaction value is $27 million.
Keefe, Bruyette & Woods Inc. served as financial advisor and Jones Walker LLP as legal counsel to Southern States. Performance Trust Capital Partners served as financial advisor and Troutman Pepper Hamilton Sanders LLP as legal counsel to Century Bank of Georgia.
