FNS Bancshares in Scottsboro, Ala., is entering the Georgia market with an agreement to buy Catoosa Bancshares in Fort Oglethorpe.
The deal would give the $526 million-asset FNS three branches in the Catoosa and Walker counties. The combined company would have $649 million of assets, $575 million of deposits and $460 million of loans with 16 branches in Alabama, Georgia and Tennessee, both companies said on Thursday.
"We are excited about this opportunity to partner with Catoosa and expand our community bank footprint into higher growth markets that complement our existing franchise,” Alan Gay, chairman of FNS, said in a press release. “Not only was this acquisition financially and strategically attractive, but having the commitment of Catoosa’s leadership to stay on with our company makes this deal all the more promising.”
Joseph Haskins, chairman and CEO of the $122 million-asset Catoosa, would become the senior director of market development and oversee the Chattanooga, Tenn., and northwest Georgia markets once the deal closes.
The all-cash deal is expected to close in the fourth quarter. Other financial terms were not disclosed.
FNS entered Tennessee last year with its purchase of Peoples State Bank of Commerce.
Keefe, Bruyette, & Woods and Banks Street Partners served as financial advisers to FNS and Bryan Cave Leighton Paisner served as legal adviser. Olsen Palmer served as financial adviser to Catoosa and Gearhiser, Peters, Elliott & Cannon served as legal adviser.
