Community First Bancorporation of Seneca and SFB Bancorp Inc. of Elizabethton, Tennessee, jointly announced on Oct. 9 that Community First will acquire SFB through a cash transaction.
The combined company will hold approximately $575 million in assets and have 12 offices in South Carolina, North Carolina and Tennessee. The company’s board of directors unanimously approved the acquisition, according to a release.
“Community First is excited to enter eastern Tennessee through our acquisition of SFB. This transaction will position us well for future growth in markets in eastern Tennessee and western North Carolina as we bridge our footprint across these portions of these states and South Carolina,” Richard Burleson, president and CEO of Community First, said. “We are pleased to partner with Security Federal Bank, a well-run community bank with a great history and deep ties in the communities it serves.”
The merger is expected to close in the first quarter of 2021.
Community First is the parent company of Community First Bank, and SFB is the parent company of Security Federal Bank.
SFB’s shareholders will receive $8.3 million in cash — $33 for each share of common stock held. The bank will also pay a special dividend on its outstanding common stock of $2.8 million or $11 per share.
After the merger is completed, Community First will set up an East Tennessee Advisory Board that will include non-employee members of the board of directors of Security Federal Bank.
“Our merger with Community First will provide our customers with access to expanded product offerings and services and also deliver value for our shareholders,” said Bill Hampton, chairman, president and CEO of SFB. “Also, the establishment of the East Tennessee Advisory Board consisting of our directors will allow us to stay connected to our customers and continue to be involved in our community.”