© Reuters.
ANNISTON, Ala. – Southern States Bancshares, Inc. (NASDAQ: SSBK), the parent company of Southern States Bank, has entered into a definitive agreement to purchase CBB Bancorp, the holding company for Century Bank of Georgia. The merger, expected to close in the third quarter of 2024 pending regulatory approval, will result in Southern States Bancshares expanding its footprint, particularly in the Atlanta metropolitan area.
Upon completion of the deal, Southern States Bank is projected to have assets totaling approximately $2.8 billion, with $2.3 billion in deposits and $2.0 billion in loans. The combined entity will operate 15 full-service branches and two loan production offices across Alabama and Georgia, with nearly half of its deposits based in Georgia.
Mark A. Chambers, President and CEO of Southern States, emphasized the strategic fit of the acquisition, noting that it will enhance the company’s presence in high-growth markets and provide a more extensive range of products and services. Century Bank, founded in 2000 and operating two branches in Northwest Georgia, reported assets of about $310 million, loans totaling $130 million, and deposits amounting to $290 million as of December 31, 2023.
Under the terms of the agreement, CBB Bancorp shareholders may choose to receive either 1.550 shares of Southern States common stock or $45.63 in cash for each share they own, with cash elections subject to proration. The fixed exchange ratio means the transaction value will fluctuate with changes in Southern States’ stock price. At Southern States’ stock price of $24.24 on February 27, 2024, the implied value per share is $38.38 and the aggregate transaction value is $27 million.
Richard E. Drews Jr., CEO of Century Bank of Georgia, expressed pride in joining Southern States, anticipating that the merger will capitalize on economic growth in Georgia.
This news is based on a press release statement.
InvestingPro Insights
As Southern States Bancshares, Inc. (NASDAQ: SSBK) gears up for its strategic acquisition of CBB Bancorp, the company’s financial metrics and analyst insights from InvestingPro shed light on its current market position. With a market capitalization of $214.31 million and a notably low price-to-earnings (P/E) ratio of 7.66, Southern States Bancshares appears to offer value relative to its near-term earnings growth potential. The company’s P/E ratio has been adjusted down even further in the last twelve months as of Q4 2023, standing at 6.46.
One of the key InvestingPro Tips highlights that the company is trading at a low earnings multiple, which could signal an attractive entry point for investors considering the stock’s recent performance, with a one-week price total return of -8.25%. This point is particularly relevant considering the stock’s price is currently at 78.87% of its 52-week high. Another tip indicates that analysts are optimistic about the company’s profitability, predicting Southern States will be profitable this year, a sentiment supported by its profitability over the last twelve months.
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