Palm Financial has signed a merger agreement to acquire SouthFirst Bancshares and its subsidiaries, including SouthFirst Bank, headquartered in Sylacauga, Alabama, US.
Under the terms of the merger agreement, each common share of SouthFirst Bancshares will be exchanged for $12.15 in cash, subject to certain adjustments as outlined in the agreement. The merger is expected to be completed in the summer of 2009.
Completion of the merger is subject to approval of the transaction by the stockholders of SouthFirst Bancshares, to the receipt of required regulatory approvals, and to the satisfaction of usual and customary closing conditions.
As a result of this merger, Sandra Stephens, CEO of SouthFirst Bancshares and her team will join Palm Financial.
SouthFirst Bancshares and SouthFirst Bank are being represented in the proposed merger transaction by Sheshunoff & Company as financial advisor and Sirote & Permutt as legal counsel. Palm Financial is being represented by Cummings & Company as financial advisor and Gunster, Yoakley & Stewart as legal counsel.
Frank Chapman II, chairman of Palm Financial, said: This is a meaningful merger for Palm Financial as SouthFirst Bank’s directors, management and employees have strong ties to the communities they serve. SouthFirst Bank has a great staff of professional bankers, and we anticipate that the impact to SouthFirst’s customer base will only be positive, as Palm Financial will continue the community banking model known to SouthFirst’s customers and employees. All loan decisions will continue to be made locally.
Ms Stephens added: This is a great opportunity for our stockholders, customers and employees. The merger provides SouthFirst with additional financial strength with minimal impact to the customers we serve. We look forward to continuing the high level of services our customers are used to in Talladega, Clanton and Sylacauga.
