Business
SouthPoint Bancshares, Inc. and Merchants Financial Services, Inc. Announce a Strategic Merger
SouthPoint Bancshares, Inc. and Merchants Financial Services, Inc. Announce a Strategic Merger.
About this update from Southpoint Bancshares Inc.
[{"type":"text","content":"\nSouthPoint Bancshares, Inc. (“SouthPoint”), the parent company of SouthPoint Bank, and Merchants Financial Services, Inc. (“Merchants”), parent of Merchants Bank of Alabama, jointly announced today the execution of a definitive merger agreement under which Merchants will merge with SouthPoint in a merger (the “merger”) in which 50% of the aggregate consideration will be paid in cash and the remaining 50% will be exchanged for shares of SouthPoint common stock.\n\nWith the merger, SouthPoint will extend its banking franchise from metro Birmingham up the I-65 corridor to include locations in Cullman, Hanceville, and Arab. Based on June 30, 2021 financials, the combined organization will have approximately $1.0 billion in assets, $895 million in deposits, and 10 branches.\n\nMerchants Bank of Alabama will continue to operate under its current name as a division of SouthPoint Bank after completion of the merger. Merchants President, CEO and Senior Lender Charles R. NeSmith will become President of North Alabama for SouthPoint and likewise, EVP and CFO W. Clark Rainwater will become CFO of the combined organization. Additionally, three directors from Merchants will join the Board(s) of Directors of SouthPoint and SouthPoint Bank.\n\n“We are extremely excited to join with the Merchants Bank team and serve their markets in Cullman and Marshall counties. We look forward to a bright future together,” said J. Stephen Smith, the Chairman, President and CEO of SouthPoint.\n\nSteven R. Glasscock, Chairman of Merchants, commented, “Merchants Bank of Alabama is proud to partner with SouthPoint Bank in this transaction and looks forward to the continued community bank benefits the combined organizations will bring to our customers, employees, stockholders and communities.”\n\nThe consideration per share of Merchant’s stock will be $30.00 cash or 1.1538 SouthPoint shares, or a combination of a portion of each. Subject to overall limitations and circumstances, Merchants shareholders will have the ability to vary the proportions of cash and stock consideration. For SouthPoint, the merger is expected to be accretive to 2022 earnings per share with a tangible book value earnback period of less than three years.\n\nThe merger, which has been unanimously approved by the Board of Direc...