Athens Bancshares Corporation Announces Definitive Agreement to Acquire Four Branches
ATHENS, TN (December 17, 2015) - Athens Bancshares Corporation ("Athens Bancshares") (NASDAQ: AFCB), holding company for Athens Federal Community Bank, National Association ("Athens Federal" or the "Bank"), announced today that the Bank has entered into a definitive agreement to purchase four branches from Atlantic Capital Bank, N.A., subsidiary of Atlantic Capital Bancshares, Inc. (NASDAQ: ACBI). The Bank has agreed to assume approximately $104 million in customer deposits and purchase approximately $15 million in loans and other assets affiliated with branches in Athens, Lenoir City, Madisonville and Sweetwater, Tennessee. These branches operate under the name "FSGBANK", a division of Atlantic Capital Bank, N.A.
According to Athens Bancshares’ and Athens Federal’s President and Chief Executive Officer, Jeffrey L. Cunningham, "This acquisition provides a great opportunity to both increase our presence in Monroe and McMinn Counties and to introduce our great customer service to Lenoir City and Loudon County. The acquisition will also provide us with additional deposits to fund our continued growth.”
Subject to customary closing conditions, including the receipt of all necessary regulatory approvals, the acquisition is expected to be completed during the Spring of 2016.
Olsen Palmer LLC served as financial advisor, and Luse Gorman, PC provided legal counsel, to Athens Federal.
About Athens Bancshares Corporation and Athens Federal Community Bank
Athens Bancshares Corporation is the parent holding company of Athens Federal Community Bank, National Association, a FDIC-insured national bank organized in 1934. The Bank is headquartered in Athens, Tennessee and provides financial services to individuals, families and businesses through its seven offices located in southeast Tennessee.
This press release may contain forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts; rather, they are statements based on the Company’s current expectations regarding its business strategies and their intended results and its future performance. Forward-looking statements are preceded by terms such as “expects”, “believes”, “anticipates”, “intends” and similar expressions. Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company’s actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; the ability to obtain required regulatory approvals in a timely manner; the ability to successfully integrate the branches to be acquired; and other factors disclosed periodically in the Company’s filings with the Securities and Exchange Commission. Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this report or made elsewhere from time to time by the Company or on its behalf. The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation.
Commonly Asked Questions
What can impacted FSG customers expect in the immediate future?
Until the transaction is officially closed, all FSG branches will continue to operate business as usual. At the closing date (anticipated in spring 2016), the impacted branches and their customer relationships will transition to Athens Federal Community Bank.
Can customers do business with AFCB now?
Not using their existing FSG ATM/debit cards or checks. Until the transaction is officially closed, all FSG branches will continue to operate business as usual. Both FSG and AFCB will provide notification as to the scheduled closing date of the transaction once all legal, regulatory and shareholder approvals are complete.
Once the transaction is closed, the impacted branches and customer accounts will be transferred to Athens Federal. The branches will open for business on the following business day as Athens Federal.
Will impacted FSG customer account information change?
Between now and the closing of the transaction, customer account(s) will not change. After the closing date, customer accounts will transfer to Athens Federal. Customers will receive personalized communications of any changes to their accounts (including product, account number and debit card changes) well in advance of the transfer. Every attempt will be made to ensure any impact to the customer is minimal.
Will impacted FSG customers need a new ATM/debit card and checks?
Yes, Athens Federal will be communicating with customers in regards to the reissue of their ATM/Debit Card as well as providing a supply of new checks that properly reflect the new account relationship with AFCB. However, until the closing anticipated in spring of 2016, customers will be able to continue to bank with FSG using their FSG ATM/debit cards and checks.
When will the transaction be finalized?
Pending legal, regulatory, and shareholder approvals, we are expecting to complete the sale in the spring of 2016.
When will the impacted FSG branch offices change names?
Rebranding of the branches will occur on the date of or during the weekend of the closing of the transaction.