Tennessee-based CapStar Financial, the parent of CapStar Bank, has agreed to acquire local lender Athens Bancshares in an all-stock transaction valued at about $113.5m.
Athens is the parent of Athens Federal Community Bank, National Association (Athens Federal) that has 10 offices in Southeast Tennessee. Athens managed around $482.3m in total assets, $422.2m in deposits and $334.5m in gross loans at the end of March 2018.
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As per the agreed terms of the deal, Athens shareholders will be entitled to receive 2.864 shares of CapStar common stock for each share held.
Upon completion of the transaction, Athens will merge with and into CapStar Financial while Athens Federal will merge with and into CapStar Bank.
CapStar president and CEO Claire Tucker said: “We have a deep respect for Athens, its valuable customers and its dedicated employees. Both of our organisations are built around customer-centric strategies and we understand the importance of delivering increasing value to customers, colleagues, communities and shareholders.
“This merger is consistent with our mission of building a high performing bank in Tennessee. We believe this transaction will offer customers and employees of both banks even greater strength and resources while maintaining our commitments to the communities in which we serve.”
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By GlobalDataAs part of the deal, Athens president and CEO Jeffrey Cunningham will assume the role of executive vice president of community banking strategy at the combined entity.
In addition, Athens COO and CFO Michael Hutsell and its Cleveland City president Jay Leggett will continue with CapStar Financial in management roles.
Following the completion of the deal, two Athens board members will join the CapStar and CapStar Bank boards.
The deal already secured the nod from the boards of both the companies. It is slated to be completed in the fourth quarter of this year, subject to shareholder and regulatory approvals.
