Heritage Financial Group, Inc. (the "Company") (NASDAQ: HBOS), the holding company for HeritageBank of the South (the "Bank"), today announced that the Bank has entered into a definitive whole-bank purchase and assumption agreement with the Federal Deposit Insurance Corporation (the "FDIC") to acquire Citizens Bank of Effingham ("Citizens"), a full-service bank based in Springfield, Georgia with total assets of approximately $214 million. The Georgia Department of Banking and Finance today closed Citizens and appointed the FDIC as receiver.
Citizens Bank of Effingham, with three branches in Effingham County – Springfield, Rincon and Guyton – is approximately 20 miles northwest of Savannah and 30 miles east of Statesboro. Citizens has a fourth location in Port Wentworth, Georgia, a suburb on the northern edge of Savannah in Chatham County. With this acquisition, HeritageBank of the South will now operate 20 branch locations in South Georgia and North Central Florida, and it moves into one of the fastest growing regions of Georgia that neighbors Savannah, building on a presence the Bank has developed in the Statesboro area, where it has two branch offices.
As a result of this acquisition, HeritageBank of the South will assume approximately $206 million in deposits and acquire $145 million in loans. In addition to assuming all of the deposits of Citizens, HeritageBank of the South will purchase essentially all of its assets. The FDIC and the Bank have entered into a loss-share agreement under which the FDIC will reimburse HeritageBank of the South for 80% of the losses on Citizens' covered loans and other real estate owned.
The four branches previously operated by Citizens will reopen on Saturday, according to their normal operating hours, as branches of HeritageBank of the South. Depositors of Citizens will automatically become depositors of HeritageBank of the South, and deposits will continue to be insured by the FDIC up to applicable limits.