The Banc Corp. in Birmingham, Ala., announced its second acquisition deal in two months Monday, saying it had agreed to buy the $566 million-asset Community Bancshares Inc. in Blountsville, Ala., for $98 million in cash and stock.
Community has 14 branches in The Banc Corp.’s footprint in the fast-growing northeast quadrant of Alabama, where it has said it wants to bulk up. In all, the buyer would have nearly 40 branches in 17 Alabama counties once the sale is completed.
The Banc Corp., a $1.4 billion-asset thrift company, said March 6 that it would pay $71.2 million in stock for the $325 million-asset Kensington Bankshares Inc. in Tampa. Kensington’s 13 branches would nearly triple its branch network in Florida.
Both deals are expected to close late this year. Community Bank, the sole banking subsidiary of Community Bancshares, and First Kensington Bank, the banking subsidiary of Kensington Bankshares, would be merge into The Banc Corp.’s Superior Bank.
The holding company plans to change it own name to Superior Bancorp in mid-May. Stan Bailey, its chief executive officer, said Monday that it is not done acquiring.
“We were looking either for banks that are in high growth-markets, such as Kensington in Tampa, or have a very low-cost deposit structure and opportunities for significant efficiencies,” like Community, Mr. Bailey said.
Community Bank was in the news several years back when some former executives were accused of bank fraud, conspiracy, and misapplication of funds.
In a June 2003 settlement with the Federal Deposit Insurance Corp., 11 officers and directors agreed to pay fines in excess of $3 million.
The bank lost $11.8 million that year.
Mr. Bailey said he is confident that Community is now is sound financial condition. It made $2.3 million in 2004, according to FDIC data.
