Charter Financial in West Point, Ga., has agreed to buy Resurgens Bancorp in Tucker, Ga.
The $1.5 billion-asset Charter said in a press release Thursday that it will pay $26.3 million in cash for the $167 million-asset Resurgens. The deal, which is expected to close in the third quarter, prices Resurgens at 168.6% of its tangible book value.
More than half of Charter’s loans and deposits would be in the Atlanta area after the deal closes. Resurgens has two branches and $130 million in deposits and loans in Atlanta.
The deal “drives us toward our vision of becoming Atlanta's premier super community bank," Robert Johnson, Charter’s chairman and CEO, said in the release.
Charles DeWitt III, Resurgens’ president and CEO, would become Charter’s president for DeKalb County.
Core deposits represent 60% of Resurgens’ total deposits. About a fifth of the seller’s deposits are non-interest-bearing.
The acquisition should be immediately accretive to Charter's earnings per share.
Charter plans to cut about a quarter of Resurgens' annual noninterest expenses. The company expects to incur $2.7 million of merger-related expenses. It should take less than four years for Charter to earn back any dilution to its tangible book value.
Charter has acquired four banks since early 2009, including last year’s purchase of Community Bank of the South in Smyrna, Ga.
Resurgens was advised by Sandler O'Neill and Nelson Mullins Riley & Scarborough. Charter was advised by FIG Partners and Alston & Bird.