Including its pending acquisition of Tennessee Community Bank Holdings, Reliant expects the acquisition to be approximately 18% accretive to fully diluted earnings per common share in 2021, assuming full achievement of anticipated cost savings, while tangible book value dilution is expected to be earned back in three years.
The combined company is expected to have total consolidated assets of approximately $3 billion, deposits of approximately $2.5 billion, and loans of approximately $2.3 billion and will operate 30 full-service branches and a loan production office in Middle and East Tennessee, after consummation of the pending TCB Holdings Transaction and the FABK acquisition. The transaction is expected to position Reliant as the second largest bank in Montgomery County, TN, and the third largest bank in the Clarksville, TN-KY Metropolitan Statistical Area, based upon most recent FDIC deposit market share data.
Reliant plans to expand capabilities for its customers and diversify its business mix with the addition of FAB’s specialty lending business. FAB’s specialty lending business provides loans to consumers for the purchase of manufactured homes, primarily in the Southeastern United States.
“We are very excited about the growth opportunity the proposed merger with First Advantage Bancorp presents. Our companies share similar values, and our partnership will reinforce the foundation for an extraordinary financial services company whose focus is the delivery of exceptional experiences to our customers, employees, and the communities in which we serve. This transaction satisfies our strategic and financial criteria for a successful acquisition,” said DeVan Ard, Jr., Reliant chairman, president, and CEO,
“I believe the partnership with Reliant Bank is an excellent fit for our shareholders, customers, and employees,” said Earl O. Bradley III, CEO of First Advantage.
The definitive agreement provides for the merger of FABK with and into Reliant, with Reliant to be the surviving company. Reliant Bank and FAB have entered into a separate bank merger agreement providing for the merger of FAB with and into Reliant Bank following the merger of Reliant and FABK. The combined bank will operate as Reliant Bank. Current FABK board members William Lawson Mabry and Michael E. Wallace are expected to join Reliant’s board of directors upon completion of the transaction.
Piper Jaffrayserved as financial advisor and Butler Snow as legal counsel to Reliant. Raymond James served as financial advisor and Kilpatrick Townsend & Stockton as legal counsel to FABK.