Southern State and Center State to mix in Merger of Equals to generate Leading Southeast Regional Bank

Southern State and Center State to mix in Merger of Equals to generate Leading Southeast Regional Bank

Combined Company Positioned become a top Efficiency standard bank with roughly $34 Billion in Assets Serving 18 High Growth areas in six states that are southeastern

Merger produces the 8th premier Bank Headquartered within the Southeast

Economically Combination that is compelling for Businesses’ Investors

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

COLD TEMPERATURES HAVEN, Fla. & COLUMBIA, S.C. –(COMPANY WIRE)– CenterState Bank Corporation (NASDAQ: CSFL) (“CenterState”), the moms and dad business of CenterState Bank, and Southern State Corporation (NASDAQ: SSB) (“South State”), the parent business of Southern State Bank, jointly established today they own entered in to a definitive contract under that your organizations will combine within an all-stock merger of equals with an overall total market worth of roughly $6 billion to create a prominent Southeastern-based bank that is regional.

(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 number one Southeast local bank. (picture: Business Wire)
beneath the regards to the merger contract, that has been unanimously approved because of the panels of Directors of both businesses, CenterState investors will get 0.3001 stocks of Southern State stock that is common each share of CenterState typical stock they possess. CenterState investors will acquire around 53% and Southern State investors will obtain around 47% regarding the combined business.

The combined company shall operate beneath the Southern State Bank title and can trade beneath the Southern State ticker sign SSB regarding the Nasdaq currency markets. The organization will likely to be headquartered in Winter Haven, Florida and can maintain a presence that is significant Columbia and Charleston, sc; Charlotte, new york; and Atlanta, Georgia.

Robert R. Hill, Jr., CEO of Southern State, will act as Executive Chairman of this combined business. John C. Corbett, CEO of CenterState, will undoubtedly be CEO for the combined business. The Board of Directors for the combined business will contain sixteen directors evenly split involving the two legacy organizations.

“We are excited to partner with CenterState, ” said Robert R. Hill, Jr. “We have great respect for John, the administration group additionally the company CenterState has generated. That is an excellent mix of countries, that will produce tremendous value for our investors. ”

“We have actually known and admired Robert along with his group for more than ten years, and now we think our two companies are a fit that is outstanding” said John C. Corbett, CEO of CenterState. “Combining both of these high-performing groups will let us build a level more powerful business together. ”

Strategically Compelling both for Companies

  • Improved Scale to push Growth and Improve Profitability: The pro forma company, with about $34 billion in assets and $26 billion in deposits, combines two companies that are high-quality comparable credit and administration philosophies.
  • Strengthens Both organizations: This merger combines two highly respected administration teams running business that is complementary. Additionally diversifies the geographies of each and every business in to a contiguous six-state impact, spanning from Florida to Virginia.
  • Combines Two Strong Core Deposit Franchises and High-Quality Loan Portfolios: The combined business can benefit through the mixture of two low-cost deposit that is core-funded and top-notch loan portfolios, supplying a well balanced supply of funds and clients.
  • High-Growth Markets: the corporation may have places in 10 associated with the 15 quickest growing Metropolitan Statistical Areas (MSAs) within the Southeast and certainly will have a pro forma deposit-weighted populace development of 6%. The combined business could have an existence in seven of this ten many markets that are populous the Southeast.
  • Experienced and Compatible Management Teams: The administration groups regarding the two businesses have actually substantial experience and run with extremely philosophies that are similar values. Each administration group has effectively finished mergers that are numerous purchases as well as the subsequent integrations of systems and groups.

Economically metrics that are attractive Shareholders

  • Significant Earnings Per Share Accretion: The deal is projected to supply more than 20% EPS accretion to South State as soon as expense saves are fully phased in, with reduced book that is tangible dilution and a TBVPS earnback amount of lower than 12 months.
  • Cost Synergies: the businesses have actually identified $80 million in anticipated yearly web cost savings completely phased in by 2022, representing roughly 10% of projected 2020 combined non-interest costs.
  • Leading professional Forma Profitability: On a professional forma basis, the combined business is anticipated to supply robust profitability metrics.

The merger will combine the executive administration groups 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 Younger, 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 into the 3rd quarter of 2020, susceptible to satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval because of the investors of each and every business.

Transaction Advisors

Piper Sandler & Co. Served as economic consultant to Southern State, with Wachtell, Lipton, Rosen & Katz serving as legal 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 seminar call to talk about the deal at 8:30 a.m. Today eastern Time. To be controlled by the call that is live please dial 877-506-9272 in the U.S. And 412-380-2004 for many other places and enter the participant rule 10138864. The real time webcast, combined with relevant presentation, is going to be available in the investor relations part of each company’s website at https: //www. and https: //www. A replay that is audio 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 employ meeting quantity 10138864. Overseas callers should dial 412-317-0088 and enter the same seminar quantity. This replay, along with the webcast, will likely to be available through February 10, 2020 at 9:00 a.m. Eastern Time.
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