South Atlantic Bancshares, Inc. to acquire Atlantic Bancshares, Inc.
December 14, 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 Wickersaid, “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.”
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.
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.
About South Atlantic Bank
South Atlantic Bank, the subsidiary bank of South Atlantic Bancshares, Inc. (OTCQX: SABK), is a $525 million financial institution that is locally owned, controlled, and operated. The bank is headquartered in Myrtle Beach, South Carolina, with additional offices in Murrells Inlet, Pawleys Island, Georgetown, North Myrtle Beach,
Charleston, and Mount Pleasant, South Carolina. South Atlantic Bank offers a wide variety of services for businesses and consumers, including South Atlantic Bank goMobile, its mobile banking app. The bank also offers internet banking, no-fee ATM access, checking, CD, and money market accounts, merchant services, mortgage loans, remote deposit capture, and more. For more information, visit SouthAtlantic.bank.
About Atlantic Community Bank
Atlantic Community Bank is the subsidiary bank of Atlantic Bancshares, Inc. (OTCPink: ATBA), founded in 2006 to meet the needs of business and consumers in the Beaufort County region of South Carolina. A $92 million financial institution, Atlantic Community Bank has its headquarters in Blufftonand an additional office on Hilton Head Island. The bank offers a wide variety of consumer and business products including banking technology. For more information, visit atlanticcommunitybank.com.
