Tennessee-based FB Financial, the parent of FirstBank, has agreed to acquire Clayton Bank and Trust and American City Bank (collectively Clayton Banks) in a deal worth about $284.2m.
Knoxville-based Clayton Bank has 13 branches across Tennessee, and manages about $887m in assets. Tullahoma-based American City Bank has five branches across Tennessee, and oversees about $308m in assets. Both the banks are subsidiaries of Clayton HC, which is owned by Jim Clayton.
As per the agreed terms of the transaction, FirstBank will acquire the issued and outstanding shares of the two banks from Clayton HC. The two banks will later merge into FirstBank, which will be the surviving entity.
FB Financial president and CEO Chris Holmes said: “This strategic transaction will significantly expand our footprint in key metropolitan markets and enhance our community markets in Tennessee. We expect the addition of the Clayton Banks to be immediately accretive to our earnings per share in 2017.”
The deal is expected to be completed in the third quarter of 2017, subject to regulatory and shareholder approvals.
“The Clayton Banks have a great team and are two of the most profitable banks in Tennessee. They have a relationship-based customer service culture that blends well with our culture. We look forward to joining with Clayton Bank and American City Bank and their associates to expand our banking services throughout Tennessee,” Holmes added.