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

Combined Company Positioned become a top Efficiency lender with more or less $34 Billion in Assets Serving 18 High development areas in six Southeastern States

Merger produces the 8th premier Bank Headquartered within the Southeast

Economically Compelling Fusion for Both Businesses’ Investors

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

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

(L-R) Robert R. Hill, Jr., Southern State Corporation CEO, and John C. Corbett, CEO of CenterState Bank, have actually established a merger of equals to create a respected Southeast local bank. (Photo: company Wire)
Under the regards to the merger contract, that was unanimously authorized by the panels of Directors of both organizations, CenterState shareholders will get 0.3001 stocks of Southern State stock that is common each share of CenterState typical stock they possess. CenterState investors will acquire more or less 53% and Southern State investors will possess about 47% of this combined business.

The combined company shall run beneath the Southern State Bank title and can trade underneath the Southern State ticker expression SSB in the Nasdaq currency markets. The business is going to be headquartered in Winter Haven, Florida and certainly will keep a presence that is significant Columbia and Charleston, sc; Charlotte, vermont; and Atlanta, Georgia.

Robert R. Hill, Jr., CEO of South State, will act as Executive Chairman of this combined business. John C. Corbett, CEO of CenterState, would be CEO of this combined business. The Board of Directors associated with the combined business will contain 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. This might be a great 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 we also think our two companies can be a fit that is outstanding” said John C. Corbett, CEO of CenterState. “Combining those two high-performing groups will allow us to build a straight stronger business together. ”

Strategically Compelling for Both Businesses

  • Enhanced Scale to Drive Growth and Improve Profitability: The pro forma company, with roughly $34 billion in assets and $26 billion in deposits, combines two companies that are high-quality comparable credit and management philosophies.
  • Strengthens Both organizations: This merger combines two highly respected administration teams running complementary company lines. In addition it diversifies the geographies of every business right into a contiguous footprint that is six-state spanning from Florida to Virginia.
  • Combines Two Strong Core Deposit Franchises and High-Quality Loan Portfolios: The combined business will benefit through the mixture of two low-cost deposit that is core-funded and top-quality loan portfolios, supplying a reliable supply of funds and clients.
  • High-Growth Markets: The organization may have areas in 10 for the 15 quickest growing Metropolitan Statistical Areas (MSAs) when you look at the Southeast and certainly will have a pro forma population that is deposit-weighted of 6%. The combined business could have an existence in seven associated with ten many markets that are populous the Southeast.
  • Experienced and Compatible Management Teams: The administration groups for the two businesses have actually considerable experience and run with extremely comparable philosophies and values. Each administration group has effectively finished mergers that are numerous purchases plus the subsequent integrations of systems and groups.

Economically Appealing Metrics for Shareholders

  • Immense 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 just minimal tangible guide value dilution and a TBVPS earnback period of lower than a year.
  • Cost Synergies: the businesses have actually identified $80 million in anticipated yearly web financial savings completely phased in by 2022, representing roughly 10% of projected 2020 combined non-interest costs.
  • Leading professional Forma Profitability: On a professional forma foundation, the combined business is anticipated to provide 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

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 quarter that is third of, susceptible to satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval because of the investors of every business.

Deal Advisors

Piper Sandler & Co. Served as monetary consultant to Southern State, with Wachtell, Lipton, Rosen & Katz serving as appropriate consultant.
Keefe, Bruyette & Woods, A Stifel business, served as monetary 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 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 webcast that is live combined with the associated presentation, will undoubtedly be available in 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 start at 2:00 p.m. Eastern Time on January 27, 2020. To gain access to the replay, dial 877-344-7529 and make use of seminar quantity 10138864. Global callers should dial 412-317-0088 and go into the exact same meeting quantity. This replay, along with cash central review the webcast, are going to be available through February 10, 2020 at 9:00 a.m. Eastern Time.
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