National Commerce in Birmingham, Ala., has agreed to buy Private Bancshares in Atlanta.
The $1.7 billion-asset National Commerce said in a press release Wednesday that it will pay $59 million in cash and stock for the $300 million-asset parent of Private Bank of Buckhead. The deal, which is expected to close by the first quarter of 2017, values Private Bancshares at 177% of its tangible book value.
Private Bancshares also owns Private Bank of Decatur and PrivatePlus Mortgage.
Private Bancshares' model "of hiring experienced bankers who bring value to their customers through high-touch service fits very well with ours," John Holcomb 3rd, National Commerce's chairman and chief executive, said in the release. "The merger … is an important component of our strategic plan to build a meaningful community banking franchise in areas that we know well."
The deal is expected to be accretive to National Commerce's earnings in its first year. It should take the company about three and a half years to earn back the acquisition's 5% dilution to tangible book value.
Keefe, Bruyette & Woods and Maynard, Cooper & Gale advised National Commerce. Banks Street Partners and Bryan Cave advised Private Bancshares.