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The $785 million-asset Georgia Commerce has agreed to buy Brookhaven Bank, the two companies announced Tuesday. The price was not disclosed.
October 2 -
Several institutions in one of the nation's hardest-hit banking markets have shed enforcement actions, or have hired new leaders, as they attempt to stage comebacks.
September 27 -
The $2.6 billion-asset Community & Southern has agreed to pay $11.80 per common share of Verity, the companies announced Wednesday.
September 4 -
Georgia Commerce Bancshares raised $25.5 million to fund potential acquisitions around Atlanta.
January 3 -
A single acquirer picked up the operations of two failed Georgia banks late Friday in a deal costing the Federal Deposit Insurance Corp. nearly $72 million.
September 2
Another deal involving Georgia community banks,
And, if the terms are right, a sale might make sense for some banks, instead of trying to raise capital, one banker says.
On Wednesday, Georgia Commerce Bancshares said it agreed to acquire Brookhaven Bank for undisclosed terms. The combined bank will hold about $963 million of assets. It's the third whole-bank deal involving Georgia banks in the past six weeks, the most-recent being
Although the banks did not disclose a price, Brookhaven likely sold for a slight premium to book value, based on other recent deals, says Lee Bradley, senior managing director at Community Capital Advisors. Many community banks would be hard pressed to raise capital on terms that are more favorable, he says. Moreover, a stock sale is more likely to dilute current shareholders.
"My forte is capital raising, but it's getting to the point that doing a deal is better than raising capital," says Bradley, who was not involved in the deal.
The metro Atlanta area has a surplus of community banks with between $100 million and $200 million of assets. Bradley says he expects to see many of those institutions combine, making them more-attractive targets for larger banks looking to bulk up.
Since
"Either Dodd-Frank or just needing more capital for the long run, it all adds up to scale being important," Tipton says.
He declined to comment on the choice between selling out or seeking more capital that faces many banks.
Bill Kane, the president and CEO of Brookhaven, could not be reached for comment.
Georgia Commerce has been one of the stronger community banks in the Peach State. It was the first Georgia bank to buy back the shares it issued to the Treasury Department under the Troubled Asset Relief Program. It also
Keefe, Bruyette & Woods advised Georgia Commerce and Womble Carlyle Sandridge & Rice was its legal counsel. Banks Street Partners advised Brookhaven and Alston & Bird gave legal advice.