Commerce Union Bank in Springfield, Tenn., has agreed to buy Reliant Bank in Brentwood, Tenn.
The banks said in a press release Monday that they expect to have increased profitability, an expanded branch network and a diversified business mix following the merger. After the merger closes, the company will have a top-15 deposit market share in the Nashville area with seven branches and two loan production offices in neighboring counties.
There was speculation last week that the two banks were in talks about a merger. Commerce Union will have roughly $655 million of assets, $514 million of loans and $512 million in deposits. Commerce is a unit of the $253 million-asset Commerce Union Bancshares.
Shareholders of the $385 million-asset Reliant would receive 1.023 shares of Commerce Union Bancshares stock for each Reliant share. Upon closing, Reliant shareholders would own about 56% of the company's stock while Commerce Union Bancshares shareholders would hold about 44%. The price of the deal was not disclosed.
William DeBerry, Commerce Union's chairman and chief executive, would continue to serve in those roles at the holding company, which should retain the Commerce name after the merger closes. DeVan Ard Jr., Reliant's president and CEO, would serve as president of Commerce Union Bancshares and president and CEO of the bank. Additionally, Commerce Union Bancshares's board is expected to have 11 members with five from each bank plus a new mutually agreed-upon independent director.
The deal is expected to close in the third quarter. Raymond James & Associates and Butler Snow advised Commerce. Sterne, Agee & Leach and Bone McAllester Norton advised Reliant.