Ameris Bancorp Completes Atlantic Coast Financial Buyout
Zacks Investment Research | May 29, 2018 10:59PM ET
Last week, Ameris Bancorp (NASDAQ:ABCB) closed the acquisition of Atlantic Coast Financial Corporation for roughly $145 million (in aggregate). Per the terms, Atlantic Coast Financial shareholders will receive $1.39 in cash and 0.17 shares of Ameris Bancorp for each outstanding share of Atlantic Coast Financial.
The deal, announced in November 2017, also resulted in the merger of Ameris Bank (banking subsidiary of Ameris Bancorp) with Atlantic Coast Financial’s subsidiary, Atlantic Coast Bank. This further expanded Ameris Bancorp’s footprint in Jacksonville, FL (eight branches) and Southeast Georgia (four branches).
At the time of announcement of deal, Ameris Bancorp noted that the combined entity will have branch network in four states with nearly $8.6 billion in assets and $6.9 billion in loans.
Further, at that time, Edwin W. Hortman, Jr., President and CEO of Ameris Bancorp said, “We view this transaction as an extension of our plan to build scale in Northeast Florida. With a combined $1.5 billion deposits in the Jacksonville MSA, the addition of Atlantic Coast will solidify us as Northeast Florida's premier community bank.”
Road Ahead
Given the strong liquidity position, Ameris Bancorp has been growing through acquisitions. In January 2018, it announced a stock cum cash transaction to acquire Georgia-based Hamilton State Bancshares, Inc. for nearly $406 million. This is the biggest deal (in terms of value) announced by Ameris Bancorp to date.
Further, over the past years, inorganic expansion strategy seems to be supporting Ameris Bancorp’s growth. Since 2013, the bank has acquired Prosperity Banking Company, Coastal Bankshares, Inc., Merchants & Southern Banks of Florida, Inc. and Jacksonville Bancorp, Inc. These buyouts have aided the company in expanding its footprint in Florida and Georgia.
Ameris Bancorp’s inorganic growth efforts have also cheered investors. The stock has rallied 26.9% in the past year, outperforming the Original post
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