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

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

Combined Company Positioned to be a higher Efficiency standard bank with more or less $34 Billion in Assets Serving 18 High development areas in six states that are southeastern

Merger produces the 8th premier Bank Headquartered into the Southeast

Economically Combination that is compelling for Businesses’ Investors

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

COLD WEATHER HAVEN, Fla. & COLUMBIA, S.C. –(BUSINESS WIRE)– CenterState Bank Corporation (NASDAQ: CSFL) (“CenterState”), the moms and dad business of CenterState Bank, and Southern State Corporation (NASDAQ: SSB) (“South State”), the moms and dad company of Southern State Bank, jointly established today they’ve entered in to a definitive agreement under that the businesses will combine in a all-stock merger of equals with a complete market value of about $6 billion to create a number one Southeastern-based bank that is regional.

(L-R) Robert R. money mutual Hill, Jr., Southern State Corporation CEO, and John C. Corbett, CEO of CenterState Bank, have actually established a merger of equals to create a prominent Southeast local bank. (picture: company Wire)
beneath the regards to the merger contract, that has been unanimously authorized because of the panels of Directors of both businesses, CenterState investors will get 0.3001 shares of Southern State common stock for each share of CenterState typical stock they possess. CenterState investors will obtain about 53% and Southern State investors will obtain more or less 47% of this combined business.

The combined business shall run underneath the Southern State Bank title and can trade underneath the Southern State ticker sign SSB regarding the Nasdaq currency markets. The organization will likely be headquartered in Winter Haven, Florida and can keep a presence that is significant Columbia and Charleston, South Carolina; Charlotte, new york; and Atlanta, Georgia.

Robert R. Hill, Jr., CEO of Southern State, will act as Executive Chairman for the combined business. John C. Corbett, CEO of CenterState, may be CEO associated with the combined business. The Board of Directors of this combined business will consist of sixteen directors evenly split between your two companies that are legacy.

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

“We have actually known and admired Robert and their group for over ten years, and now we think our two organizations can be a fit that is outstanding” said John C. Corbett, CEO of CenterState. “Combining both of these teams that are high-performing let us build a level stronger business together. ”

Strategically Compelling for Both Businesses

  • Improved Scale to operate a vehicle Growth and Improve Profitability: The pro forma company, with around $34 billion in assets and $26 billion in deposits, combines two top-notch businesses with comparable credit and administration philosophies.
  • Strengthens Both organizations: This merger combines two highly respected administration teams running complementary company lines. It diversifies the geographies of every business into a contiguous six-state impact, spanning from Florida to Virginia.
  • Combines Two Strong Core Deposit Franchises and High-Quality Loan Portfolios: The combined company may benefit through the mixture of two low-cost core-funded deposit bases and top-quality loan portfolios, supplying a well balanced way to obtain funds and clients.
  • High-Growth Markets: the business could have places in 10 for the 15 quickest growing Metropolitan Statistical Areas (MSAs) into the Southeast and certainly will have a pro forma deposit-weighted populace development of 6%. The combined business could have a presence in seven for the ten many markets that are populous the Southeast.
  • Experienced and Compatible Management Teams: The administration groups regarding the two businesses have actually considerable experience and operate with extremely comparable philosophies and values. Each administration group has effectively completed mergers that are numerous acquisitions as well as the subsequent integrations of systems and teams.

Economically metrics that are attractive Shareholders

  • Immense Earnings Per Share Accretion: The deal is projected to produce more than 20% EPS accretion to South State when expense saves are fully phased in, with reduced book that is tangible dilution and a TBVPS earnback amount of significantly less than twelve months.
  • Cost Synergies: the firms have actually identified $80 million in anticipated yearly cost that is net completely phased in by 2022, representing about 10% of projected 2020 combined non-interest costs.
  • Leading Pro Forma Profitability: On a professional forma foundation, the combined business is anticipated to provide robust profitability metrics.

The merger will combine the management that is executive from both businesses. 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

Southern 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, at the mercy of satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval by the investors of each and every business.

Deal Advisors

Piper Sandler & Co. Served as monetary consultant to Southern State, with Wachtell, Lipton, Rosen & Katz serving as appropriate advisor.
Keefe, Bruyette & Woods, A Stifel business, served as monetary advisor to CenterState, with Davis Polk & Wardwell LLP serving as appropriate consultant.

Joint Investor Conference Call

You will see a joint meeting call to talk about the deal at 8:30 a.m. Eastern Time today. To hear the call that is live please dial 877-506-9272 in the U.S. And 412-380-2004 for several other places and enter the participant rule 10138864. The real time webcast, combined with relevant presentation, are going to be available from the investor relations area of each company’s web site at https: //www. Southstatebank.com/ and https: //www. Centerstatebank.com/. A audio replay will be accessible beginning at 2:00 p.m. Eastern Time on January 27, 2020. To gain access to the replay, dial 877-344-7529 and employ seminar quantity 10138864. Global callers should dial 412-317-0088 and go into the conference number that is same. This replay, along with the webcast, will soon be available through 10, 2020 at 9:00 a. M february. Eastern Time.
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