The transaction is expected to affect Franklin Synergy Bank’s tangible book value per share along with its capital ratios. The transaction entails that holders of Civic common stock will get Franklin Financial Network common stock shares. On completion of the acquisition process, the shareholders of Franklin Financial Network will own 91% of the combined entity, while Civic shareholders will own 9%.
The combined entity will have total assets worth $2.1bn with $1.8bn in total deposits and $1.2bn in total loans, depending on financial results as on 30 September 2015. The company will also have an expanded presence with 13 offices in Davidson, Williamson and Rutherford counties.
Franklin Synergy Bank chairman and CEO Richard E. Herrington said: "This acquisition is consistent with Franklin Synergy’s growth strategy in contiguous markets with long-term growth potential. The benefits to Franklin Synergy Bank include entrée into the Davidson County/Nashville banking markets, as well as a home base for our healthcare banking team, led by Tim Fouts."
Civic president and CEO Sarah Meyerrose said: "We are very pleased to be joining forces with Franklin Synergy. This opportunity is the right fit for us as our bank cultures are very similar. In addition, we share a dedication to exceptional customer service as well as a mission to enhance shareholder value."
The transaction has received the approval of board of directors of both the companies. The deal is slated to be completed in the second quarter of 2016. The transaction is yet to receive regulatory approvals, approval from Civic’s shareholders and subject to satisfaction of certain customary closing conditions.
Investment banking firm Raymond James & Associates, and Baker, Donelson, Bearman, Caldwell & Berkowitz, PC acted as financial and legal advisors for Franklin Financial Network. Professional Bank Services, Stephens, Inc., and the law firm of Butler Snow, LLP, are the advisors for Civic Bank & Trust.
Image: Franklin Synergy Bank’s subsidiary has signed an agreement to acquire Civic Bank & Trust. Photo: courtesy of Chaiwat / FreeDigitalPhotos.net.
