The transaction, which is the second for the Tennessee-based Reliant Bancorp in the last two months, will extend its presence into Clarksville and boost its market share in Nashville
Reliant Bancorp has agreed to acquire Tennessee-based First Advantage Bancorp in a cash-cum-stock deal worth around $123.4m.
Also based in Tennessee, Reliant Bancorp is the parent company for Reliant Bank, while First Advantage Bancorp is the parent company for First Advantage Bank, which is headquartered in Clarksville.
First Advantage Bank operates eight banking locations in Clarksville, Franklin, and Nashville. The bank also operates a loan production office in Knoxville.
Reliant Bancorp chairman, president, and CEO DeVan Ard, Jr. said: “This transaction satisfies our strategic and financial criteria for a successful acquisition. We are gaining a strong presence in the attractive Clarksville MSA, anticipate double-digit EPS accretion, and expect to benefit from the strong growth and fantastic asset quality trends that First Advantage Bank has demonstrated.”
Last month, Reliant Bancorp agreed to acquire Tennessee Community Bank
For Reliant Bancorp, the deal with First Advantage Bancorp follows its last month transaction with Tennessee Community Bank, the parent company for Community Bank & Trust (CB&T). Under the earlier deal, Reliant Bancorp agreed to acquire Tennessee Community Bank for nearly $37.2m.
After the completion of the two acquisitions, the enlarged bank holding company will have a total of 30 full-service branches and a loan production office in Middle and East Tennessee. It will have nearly $3bn in assets under management, around $2.5bn in deposits, and loans of around $2.3bn.
Furthermore, the enlarged Reliant Bank is expected to become the second-largest bank in Montgomery County and the third-largest bank in the Clarksville, TN-KY Metropolitan Statistical Area, based on the latest FDIC deposit market share data.
Reliant Bancorp said that it will look to expand capabilities for its customers and diversify its business mix through the addition of First Advantage Bank’s speciality lending business. The speciality lending business of First Advantage Bank offers loans to consumers to buy manufactured homes located mainly in the Southeastern US region.
As per the terms of the agreement, First Advantage Bancorp’s shareholders will exchange each of their shares with 1.17 shares of Reliant Bancorp common stock and $3.00 cash.
First Advantage Bancorp CEO Earl Bradley III said: “I believe the partnership with Reliant Bank is an excellent fit for our shareholders, customers, and employees.
“The combination of our companies will better align our resources, enhance our financial strength, and expand our product offerings and technology solutions, all while allowing us to remain actively involved in our communities.”
The transaction, which will be subject to regulatory and shareholder approvals, and certain other customary closing conditions, is expected to be closed in the second quarter of 2020.