Tennessee-based Reliant Bancorp has signed a definitive agreement to acquire local bank holding company First Advantage Bancorp (FABK) in a deal valued at around $123.4m.
The deal comes a month after Reliant Bancorp agreed to acquire another local entity Tennessee Community Bank Holdings.
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Under the terms of the latest agreement, FABK shareholders will receive 1.17 shares of Reliant common stock and $3 in cash for each share of FABK common stock
Once complete, FABK will merge with Reliant Bancorp, while First Advantage Bank will combine its banking operations with Reliant Bancorp-subsidiary Reliant Bank.
Reliant Bank and First Advantage Bank have also separately signed an agreement to execute the merger.
The combined entity will operate as Reliant Bank with total consolidated assets of nearly $3bn. The deal further bolsters Reliant’s presence in Tennessee and adds FAB’s specialty lending business to its portfolio.
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By GlobalDataReliant chairman, president, and CEO DeVan Ard, Jr. said: “This transaction satisfies our strategic and financial criteria for a successful acquisition.
“We are gaining a strong presence in the attractive Clarksville MSA, anticipate double-digit EPS accretion, and expect to benefit from the strong growth and fantastic asset quality trends that First Advantage Bank has demonstrated.”
First Advantage CEO Earl Bradley said: “The combination of our companies will better align our resources, enhance our financial strength, and expand our product offerings and technology solutions, all while allowing us to remain actively involved in our communities.”
The First Advantage Bancorp acquisition is expected close in second quarter of 2020, subject to regulatory and shareholder approvals.
