Atlantic Capital Bancshares in Atlanta has agreed to sell 14 branches in Tennessee and north Georgia to FB Financial in Nashville, Tenn.
The $2.9 billion-asset Atlantic Capital said in a press release Wednesday that it also agreed to sell its mortgage banking business to the $5.1 billion-asset FB Financial. The deal includes $602 million in deposits and $381 million in loans.
FB Financial agreed to pay a deposit premium equal to 6.25% of the balance of the assumed deposits, or roughly $37.6 million. The transaction is expected to close in the second quarter.
Many of the branches are concentrated around the Tennessee markets of Knoxville and Chattanooga. About 120 people work at the branches being sold, according to a presentation tied to the sale.
“We are extremely excited to have found a high-quality institution with an established presence in these markets that will allow our talented Tennessee and north Georgia team members to continue to serve our customers,” Douglas Williams, Atlantic Capital’s president and CEO, said in the release.
“While we value our business relationships in these markets, and appreciate our customers’ loyalty and our team members’ hard work, we have decided to pursue a strategy focused on our commercial banking opportunities in Atlanta and our other national commercial lines of business,” Williams added.
Atlantic Capital said the branch sale should reduce annual expenses by up to $19 million.
Atlantic Capital was advised by Sandler O’Neill and Banks Street Partners. FB Financial was advised by Keefe, Bruyette & Woods.
