© Reuters.
ANNISTON, Ala. – Southern States Bancshares, Inc. (NASDAQ: SSBK), the mother or father firm of Southern States Financial institution, has entered right into a definitive settlement to buy CBB Bancorp, the holding firm for Century Financial institution of Georgia. The merger, anticipated to shut within the third quarter of 2024 pending regulatory approval, will lead to Southern States Bancshares increasing its footprint, notably within the Atlanta metropolitan space.
Upon completion of the deal, Southern States Financial institution is projected to have belongings totaling roughly $2.8 billion, with $2.3 billion in deposits and $2.0 billion in loans. The mixed entity will function 15 full-service branches and two mortgage manufacturing workplaces throughout Alabama and Georgia, with practically half of its deposits primarily based in Georgia.
Mark A. Chambers, President and CEO of Southern States, emphasised the strategic match of the acquisition, noting that it’ll improve the corporate’s presence in high-growth markets and supply a extra intensive vary of services and products. Century Financial institution, based in 2000 and working two branches in Northwest Georgia, reported belongings of about $310 million, loans totaling $130 million, and deposits amounting to $290 million as of December 31, 2023.
Below the phrases of the settlement, CBB Bancorp shareholders could select to obtain both 1.550 shares of Southern States widespread inventory or $45.63 in money for every share they personal, with money elections topic to proration. The mounted change ratio means the transaction worth will fluctuate with adjustments in Southern States’ inventory worth. At Southern States’ inventory worth of $24.24 on February 27, 2024, the implied worth per share is $38.38 and the mixture transaction worth is $27 million.
Richard E. Drews Jr., CEO of Century Financial institution of Georgia, expressed delight in becoming a member of Southern States, anticipating that the merger will capitalize on financial progress in Georgia.
This information is predicated on a press launch assertion.
InvestingPro Insights
As Southern States Bancshares, Inc. (NASDAQ: SSBK) gears up for its strategic acquisition of CBB Bancorp, the corporate’s monetary metrics and analyst insights from InvestingPro make clear its present market place. With a market capitalization of $214.31 million and a notably low price-to-earnings (P/E) ratio of seven.66, Southern States Bancshares seems to supply worth relative to its near-term earnings progress potential. The corporate’s P/E ratio has been adjusted down even additional within the final twelve months as of This autumn 2023, standing at 6.46.
One of many key InvestingPro Suggestions highlights that the corporate is buying and selling at a low earnings a number of, which may sign a lovely entry level for traders contemplating the inventory’s current efficiency, with a one-week worth complete return of -8.25%. This level is especially related contemplating the inventory’s worth is at present at 78.87% of its 52-week excessive. One other tip signifies that analysts are optimistic concerning the firm’s profitability, predicting Southern States will likely be worthwhile this 12 months, a sentiment supported by its profitability over the past twelve months.
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