Heritage Financial Group has signed a definitive agreement to purchase all of the common stock of Alarion Financial Services, in a stock transaction estimated at nearly $22.1m.
Post-acquisition, which is expected to be immediately accretive to Heritage Financial Group’s fully diluted earnings per share, the acquirer would have nearly $1.7bn in assets, $1bn in loans, and $1.4bn in deposits.
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Heritage Financial Group president and CEO Leonard Dorminey said, "This transaction will greatly increase our footprint in North Central Florida, expanding our presence in the Ocala market and providing us with an initial entry into the Gainesville area – both attractive markets for HeritageBank."
Heritage Financial expects the transaction to triple the number of branches in North Central Florida, and move its deposit market share into the top 10 in both Ocala and Gainesville.
As per the terms of the transaction, which has been unanimously approved by the boards of directors of both companies, for each share of Alarion common stock, its shareholders will receive 0.44 shares of Heritage Financial common stock.
Subject to the concerned regulatory approval as well as other customary closing conditions, the transaction is likely to conclude during the third quarter of 2014.
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By GlobalDataHeadquartered in Ocala, Florida, Alario operates as the holding company for Alarion Bank, which operates six bank branches in Ocala, Gainesville and Alachua. It has nearly $283m in assets, $200m in loans, $241m in deposits, and $18m in tangible common equity, as of 31 March 2014.
