Southern State and Center State to mix in Merger of Equals to produce Southeast Regional that is leading Bank

Southern State and Center State to mix in Merger of Equals to produce Southeast Regional that is leading Bank

Combined Company Positioned become a higher Efficiency standard bank with about $34 Billion in Assets Serving 18 High development areas in six Southeastern States

Merger produces the 8th premier Bank Headquartered within the Southeast

Economically Compelling Blend both for Companies’ Shareholders

Combines Two Low-Cost Deposit Bases with Over One Million Customers and a Well placed Branch system from Florida through Virginia

WINTERTIME HAVEN, Fla. & COLUMBIA, S.C. –(COMPANY WIRE)– CenterState Bank Corporation (NASDAQ: CSFL) (“CenterState”), the parent business of CenterState Bank, and Southern State Corporation (NASDAQ: SSB) (“South State”), the moms and dad business of South State Bank, jointly established today they’ve entered into a definitive contract under that the organizations will combine in a all-stock merger of equals with a complete market value of around $6 billion to create a number one Southeastern-based local bank.

(L-R) Robert R. Hill, Jr., South State Corporation CEO, and John C. Corbett, CEO of CenterState Bank, have actually established a merger of equals to create a respected Southeast bank that is regional. (picture: company Wire)
beneath the regards to the merger agreement, that was unanimously approved by the Boards of Directors of both businesses, CenterState shareholders will get 0.3001 stocks of Southern State stock that is common each share of CenterState typical stock they have. CenterState investors will have more or less 53% and South State investors will acquire about 47% regarding the combined business.

The combined business will run underneath the Southern State Bank title and can trade underneath the Southern State ticker icon SSB in the Nasdaq stock exchange. The business is supposed to be headquartered in Winter Haven, Florida and certainly will keep an important existence in Columbia and Charleston, sc; Charlotte, vermont; and Atlanta, Georgia.

Robert R. Hill, Jr., CEO of Southern State, will act as Executive Chairman for the combined company. John C. Corbett, CEO of CenterState, will soon be CEO for the combined business. The Board of Directors of this combined business will include sixteen directors evenly split involving the two companies that are legacy.

“We are excited to partner with CenterState, ” said Robert R. Hill, Jr. “We have actually great respect for John, the administration team together with company CenterState has generated. This really is an excellent mix of countries, that may produce value that is tremendous our investors. ”

“We have actually known and admired Robert and their group for over a ten years, therefore we think our two businesses can be a fit that is outstanding” said John C. Corbett, CEO of CenterState. “Combining both of these teams that are high-performing let us build a straight more powerful company together. ”

Strategically Compelling both for Businesses

  • Improved Scale to operate a vehicle Growth and Improve Profitability: The pro forma company, with more or less $34 billion in assets and $26 billion in deposits, combines two top-quality businesses with comparable credit and administration philosophies.
  • Strengthens Both businesses: This merger combines two highly respected administration teams running business that is complementary. Moreover it diversifies the geographies of each and every business in to a contiguous footprint that is six-state spanning from Florida to Virginia.
  • Combines Two Strong Core Deposit Franchises and High-Quality Loan Portfolios: The combined business may benefit through the mixture of two low-cost deposit that is core-funded and top-quality loan portfolios, supplying a well balanced way to obtain funds and clients.
  • High-Growth areas: the business could have places in 10 associated with 15 quickest growing Metropolitan Statistical Areas (MSAs) into the Southeast and can have a pro forma deposit-weighted populace development of 6%. The combined business has a existence in seven associated with ten many populous areas in the Southeast.
  • Experienced and Compatible Management Teams: The administration groups associated with the two organizations have actually considerable experience and run with extremely comparable philosophies and values. Each administration group has effectively finished many mergers and purchases together with subsequent integrations of systems and groups.

Economically Appealing Metrics for Shareholders

  • Immense Earnings Per Share Accretion: The deal is projected to provide more than 20% EPS accretion to South State when expense saves are fully phased in, with just minimal concrete guide value dilution and a TBVPS earnback amount of lower than twelve months.
  • Cost Synergies: The companies have actually identified $80 million in anticipated annual web financial savings completely phased in by 2022, representing around 10% of projected 2020 combined non-interest costs.
  • Leading professional Forma Profitability: On a professional forma foundation, the combined business is anticipated to produce robust profitability metrics.

The merger will combine the management that is executive from both companies. The executive team of the combined company will include three members from each legacy company in addition to Robert Hill, Executive Chairman, and John Corbett, CEO.

CenterState Leadership
Will Matthews, Chief Financial Officer
Steve Young, Chief Strategy Officer
Richard Murray, President

South State Leadership
Renee Brooks, Chief Working Officer
Greg Lapointe, Chief Banking Officer
John Pollok, SEVP & Board Member

Approval and Timing

The merger is anticipated to shut within the 3rd quarter of 2020, susceptible to satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval by the investors of each and every business.

Deal Advisors

Piper Sandler & Co. Served as economic consultant to Southern State, with Wachtell, Lipton, Rosen & Katz serving as appropriate advisor.
Keefe, Bruyette & Woods, A Stifel business, served as economic consultant to CenterState, with Davis Polk & Wardwell LLP serving as appropriate consultant.

Joint Investor Conference Call

You will see a joint meeting call to talk about the deal at 8:30 a.m. Today eastern Time. To be controlled by the real time call, please dial 877-506-9272 inside the U.S. And 412-380-2004 for several other places and enter the participant rule 10138864. The real time webcast, combined with the relevant presentation, should be available in the investor relations portion of each company’s web site at https: //www. and https: //www. A sound replay will be accessible start at 2:00 p.m. Eastern Time on January 27, 2020. To gain access to the replay, dial 877-344-7529 and make use of seminar quantity 10138864. Global callers should dial 412-317-0088 and go into the conference number that is same. This replay, plus the webcast, will undoubtedly be available through 10, 2020 at 9:00 a. M february. Eastern Time.
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