Southern Bank acquires Heritage Bank
By From staff reports
Published in News on October 23, 2015 1:46 PM
MOUNT OLIVE -- Southern BancShares Inc. and Heritage Bankshares Inc., Norfolk, Va., Wednesday announced that they have reached a definitive agreement under which Heritage and its bank subsidiary, Heritage Bank, will be merged into Southern and its bank subsidiary, Southern Bank and Trust Company.
The joint announcement was made by J. Grey Morgan Jr., chairman and CEO of Southern Bank, and Michael S. Ives, president and CEO of Heritage Bank.
The agreement is subject to approvals by regulatory agencies and Heritage's shareholders and other customary closing conditions.
Southern will pay $21.05 in cash for each of the outstanding shares of Heritage's common stock, subject to possible adjustment as provided in the agreement.
The agreement has been unanimously approved by the boards of directors of both companies, and the transaction is expected to be completed during the first quarter of 2016.
"This transaction represents an excellent opportunity for us to increase our presence and market share in the area as Southern Bank currently operates nine banking offices across the Hampton Roads region," Morgan said. "We are excited about the opportunity to introduce ourselves to our new neighbors and friends, while continuing the traditions of financial strength, customer service and commitment to excellence to which Heritage Bank's customers are accustomed."
Southern Bank has a branch on Wayne Memorial Drive and is in the process of building a second office at the corner of East Ash Street and Spence Avenue.
"Southern has a conservative operating philosophy quite similar to ours," Ives said. Over the years, Southern has maintained a very high level of liquidity and outstanding asset quality in its core bank in North Carolina and has provided thoughtful, individualized service to its business clients.
"Our merger with Southern will give our clients the comfort of banking with a very conservative, safe and sound bank while enjoying the benefits of a wider range of services and a much higher legal lending limit. Our customers will continue to get their same great local service, but have the advantage of a much larger network of locations and ATMs extending far into North Carolina."
Following the merger, Ives will serve as a director of Southern BancShares and Southern Bank.
He will also serve as a consultant to Southern Bank regarding Heritage Bank's business, operations, customers and loan portfolio and Southern Bank's continued growth and expansion in Hampton Roads.
Both parties say they expect the transition to be a smooth transition for bank customers.
Raymond James & Associates, Inc. served as financial advisor and Ward and Smith, PA served as legal counsel to Southern.
FIG Partners LLC served as financial adviser and Troutman Sanders LLP served as legal counsel to Heritage and Heritage Bank.
Heritage Bankshares, Inc. is the holding company for Heritage Bank, which was founded in 1977 and operates five banking offices in the Hampton Roads region.
Headquartered in Norfolk, Va., Heritage Bank has approximately $340 million in total assets.
More information about the bank is available on the Internet at www.heritagebankva.com.
Southern BancShares (NC), Inc. is the holding company for Southern Bank and Trust Company, which was founded in 1901 and operates more than 60 offices in North Carolina and Virginia.
Headquartered in Mount Olive, Southern Bank has approximately $2.2 billion in total assets.