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

Combined Company Positioned become a top Efficiency standard bank with about $34 Billion in Assets Serving 18 High development areas in six states that are southeastern

Merger produces the Largest that is 8th Bank into the Southeast

Economically Combination that is compelling for Businesses’ Shareholders

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. –(COMPANY WIRE)– CenterState Bank Corporation (NASDAQ: CSFL) (“CenterState”), the parent business of CenterState Bank, and Southern State Corporation (NASDAQ: SSB) (“South State”), the moms and dad business of Southern State Bank, jointly established today they own entered as a definitive contract under that the organizations will combine within an all-stock merger of equals with an overall total market value of roughly $6 billion to create a number one 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. (picture: company Wire)
beneath the regards to the merger contract, which was unanimously approved by the panels of Directors of both companies, CenterState investors will get 0.3001 stocks of Southern State stock that is common each share of CenterState typical stock they possess. CenterState investors will have around 53% and Southern State investors will obtain around 47% for the combined company.

The combined business shall run beneath the Southern State Bank title and certainly will trade beneath the Southern State ticker icon SSB in the Nasdaq stock exchange. The business is supposed to be headquartered in Winter Haven, Florida and can keep an important existence in Columbia and Charleston, sc; Charlotte, vermont; and Atlanta, Georgia.

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

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

“We have actually known and admired Robert along with his group for over ten years, and then we think our two companies are a fit that is outstanding” said John C. Corbett, CEO of CenterState. “Combining those two high-performing groups will let us build a much stronger business together. ”

Strategically Compelling both for Businesses

• Improved Scale to operate a vehicle Growth and Improve Profitability: The pro forma company, with more or less $34 billion in assets and $26 billion in deposits, combines two top-notch organizations with comparable credit and management philosophies.
• Strengthens Both Companies: This merger combines two highly respected administration teams running complementary company lines. It diversifies the geographies of each and every business in to a contiguous six-state impact, spanning from Florida to Virginia.
• Combines Two Strong Core Deposit Franchises and High-Quality Loan Portfolios: The combined business can 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 areas: the business may have places in 10 associated with the 15 quickest growing Metropolitan Statistical Areas (MSAs) within the Southeast and certainly will have a pro forma deposit-weighted populace development of 6%. The combined business could have a existence in seven of this ten many populous areas in the Southeast.
• Experienced and Compatible Management Teams: The administration groups for the two organizations have actually substantial experience and run with really philosophies that are similar values. Each administration group has successfully completed mergers that are numerous purchases in addition to subsequent integrations of systems and groups.

Economically Appealing Metrics for Shareholders

• Immense Earnings Per Share Accretion: The deal is projected to provide more than 20% EPS accretion to South State when expense saves are fully phased in, with just minimal book that is tangible dilution and a TBVPS earnback amount of not as much as a year.
• Cost Synergies: the firms have actually identified $80 million in anticipated yearly net 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 management that is executive from both companies. As well as Robert Hill, Executive Chairman, and John Corbett, CEO, the executive group of this combined company should include three people from each legacy company.

CenterState Leadership
Will Matthews, Chief Financial Officer
Steve Younger, Chief Strategy Officer
Richard Murray, President

Southern State Leadership
Renee Brooks, Chief Operating Officer
Greg Lapointe, Chief Banking Officer
John Pollok, SEVP & Board Member

Approval and Timing

The merger is anticipated to shut within the third 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. alabama payday loans

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 conference that is joint to go over the deal at 8:30 a.m. Eastern Time today. To be controlled by the real time call, please dial 877-506-9272 inside the U.S. And 412-380-2004 for many other places and go into the participant rule 10138864. The real time webcast, combined with relevant presentation, is available from the investor relations portion of each company’s web site at https: //www. Southstatebank.com/ and https: //www. Centerstatebank.com/. A replay that is audio be available start at 2:00 p.m. Eastern Time on January 27, 2020. To get into the replay, dial 877-344-7529 and use meeting number 10138864. International callers should dial 412-317-0088 and enter the exact same meeting quantity. This replay, along with the webcast, would be available through February 10, 2020 at 9:00 a.m. Eastern Time.
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