Reliant Bancorp in Brentwood, Tenn., has agreed to buy Tennessee Community Bank Holdings in Ashland City, Tenn.
The $1.8 billion-asset Reliant said in a press release Monday that it will buy the parent of the $251 million-asset Community Bank & Trust for $37.2 million in cash and stock. The deal is expected to close in the first quarter.
Reliant will have 22 branches, $1.8 billion in deposits and $1.5 billion in loans when the deal closes. It will gain branches in Chatham County, which is just west of Nashville.
“Our companies share similar values, and our partnership will reinforce the foundation for an extraordinary financial services company that emphasizes service to our customers, employees and communities,” DeVan Ard Jr., Reliant’s chairman, president and CEO, said in the release.
“The transaction meets all of our criteria for an acquisition, will be immediately accretive to earnings and provides a strong core deposit base,” Ard added.
Reliant said it expects the acquisition to be 10.5% accretive to its 2020 earnings per share. It should take less than three years for Reliant to earn back an expected 5.3% dilution to its tangible book value.
Hovde Group and Butler Snow advised Reliant. Olsen Palmer and Bass, Berry & Sims advised Tennessee Community.
