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

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

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

Merger Creates the 8th premier Bank Headquartered when you look at the Southeast

Economically Compelling Mix both for Businesses’ Investors

Combines Two Low-Cost Deposit Bases with Over One Million Customers and a Well placed Branch system from Florida through Virginia

WINTERTIME HAVEN, Fla. & COLUMBIA, S.C. –(BUSINESS 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 Southern State Bank, jointly established today they have entered in to a definitive agreement under that your organizations will combine within an all-stock merger of equals with a complete 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 number one Southeast bank that is regional. (picture: company Wire)
beneath the regards to the merger contract, that has been unanimously authorized because of the panels of Directors of both businesses, CenterState investors will get 0.3001 stocks of Southern State common stock for each share of CenterState typical stock they possess. CenterState investors will obtain around 53% and Southern State investors will obtain around 47% for the combined business.

The combined company shall operate beneath the Southern State Bank title and can trade beneath the South State ticker expression SSB from the Nasdaq stock exchange. The business is going to be headquartered in Winter Haven, Florida and certainly will keep a substantial presence in Columbia and Charleston, sc; Charlotte, vermont; and Atlanta, Georgia.

Robert R. Hill, Jr., CEO of Southern State, will act as Executive Chairman of this combined company. John C. Corbett, CEO of CenterState, will likely to be CEO regarding the combined business. The Board of Directors associated with combined business will contain sixteen directors evenly split amongst the two companies that are legacy.

“We are excited to partner with CenterState, ” said Robert R. Hill, Jr. “We have actually great respect for John, the administration group as well as the company CenterState has generated. This can be an excellent mix of countries, that will produce tremendous value for our investors. ”

“We have actually known and admired Robert and their group for over 10 years, so money mutual personal loans we think our two businesses can be an outstanding fit, ” said John C. Corbett, CEO of CenterState. “Combining those two teams that are high-performing let us build a level more powerful business together. ”

Strategically Compelling both for Organizations

  • Improved Scale to push Growth and Improve Profitability: The pro forma company, with more or less $34 billion in assets and $26 billion in deposits, combines two high-quality organizations with comparable credit and administration philosophies.
  • Strengthens Both Companies: This merger combines two highly respected administration teams running complementary company lines. It diversifies the geographies of each and every company right into a contiguous six-state impact, spanning from Florida to Virginia.
  • Combines Two Strong Core Deposit Franchises and High-Quality Loan Portfolios: The combined business may benefit through the mixture of two low-cost core-funded deposit bases and top-notch loan portfolios, supplying a reliable way to obtain funds and clients.
  • High-Growth areas: the business may have places in 10 associated with the 15 quickest growing Metropolitan Statistical Areas (MSAs) into the Southeast and certainly will have a pro forma deposit-weighted population development of 6%. The combined business may have a existence in seven regarding the ten many markets that are populous the Southeast.
  • Experienced and Compatible Management Teams: The administration groups regarding the two businesses have actually substantial experience and operate with extremely philosophies that are similar values. Each administration group has effectively finished many mergers and purchases and also the subsequent integrations of systems and groups.

Economically metrics that are attractive Shareholders

  • Immense Earnings Per Share Accretion: The deal is projected to provide more than 20% EPS accretion to South State when expense saves are fully phased in, with reduced concrete guide value dilution and a TBVPS earnback amount of lower than a year.
  • Cost Synergies: the firms have actually identified $80 million in anticipated annual 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 basis, the combined business is anticipated to provide robust profitability metrics.

The merger will combine the executive administration teams from both businesses. As well as Robert Hill, Executive Chairman, and John Corbett, CEO, the executive group of this combined business should include three people from each legacy company.

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 third quarter of 2020, susceptible to satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval because of the investors of each and every business.

Deal Advisors

Piper Sandler & Co. Served as monetary consultant to South State, with Wachtell, Lipton, Rosen & Katz serving as appropriate advisor.
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

There will be a joint meeting call to go over the deal at 8:30 a.m. Today eastern Time. To be controlled by 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 likely to be available regarding the investor relations portion of each company’s website at https: //www. and https: //www. A audio replay will be accessible start at 2:00 p.m. Eastern Time on January 27, 2020. To get into the replay, dial 877-344-7529 and employ seminar quantity 10138864. Global callers should dial 412-317-0088 and enter the conference number that is same. This replay, as well as the webcast, will likely to be available through 10, 2020 at 9:00 a. M february. Eastern Time.
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