Community Bankers Trust (ESXB) in Glen Allen, Va., has agreed to sell its Georgia operations to Community & Southern Holdings in Atlanta.
Community & Southern will pay $5.2 million for four Georgia branches, a slight discount to the properties' book value, along with a 1.33% premium for roughly $192 million of deposits, the companies said Monday. Community Southern can renegotiate the deposit premium if the deposit total decreases by more than $10 million before the transaction's expected fourth quarter completion. Community Bankers will retain the loans.
The purchase will give the $2.6 billion-asset Community & Southern 38 branches, all in Georgia, according to the Federal Deposit Insurance Corp. It will reduce the $1.1 billion-asset Community Bankers' network to 20 branches in Virginia and Maryland, according to the FDIC.
Community Bankers said it expects the sale of its Georgia business to reduce expenses by $1.2 million a year.
Community Bankers' Bank of Essex bought four Georgia branches in November 2008 following the failure of the $681 million-asset Community Bank in Loganville. Bank of Essex bought about $84 million of Community Bank's assets and paid the FDIC a $3.2 million premium for the failed bank's $611 million in deposits.
"We acquired the Georgia franchise when having appropriate amounts of liquidity and core deposits was critical to our business goals at that time," Res Smith, Community Bankers' president and chief executive, said in a press release. "Our strategies, however, have changed over the years, and this divestiture is in line with our long-term plan and allows us to focus solely on what has become our core banking franchises in the Virginia and Maryland markets."
Community & Southern bought one Atlanta branch from Ameris Bancorp (ABCP) last year.