Heritage Financial Group, Inc. (NASDAQ: HBOS), the holding company for HeritageBank of the South, today announced that it has signed a definitive agreement to purchase a single branch in Auburn, Alabama, from AB&T National Bank, a wholly owned subsidiary of Community Capital Bancshares, Inc. (ALBY:PK), based in Albany, Georgia. The branch to be acquired is located at 1943 East Glenn Avenue, Auburn, Alabama.
The transaction, which is expected to close in the second quarter of 2012, subject to regulatory approval and other customary conditions, is expected to result in the transfer of approximately $13 million in loans and approximately $20 million in deposits, including all demand deposits, savings accounts, money market accounts and certificates of deposit. In addition to purchasing the branch, HeritageBank of the South also expects to retain the employees currently working in that branch.
Commenting on the announcement, Leonard Dorminey, President and Chief Executive Officer of Heritage Financial Group, Inc., said, "We are pleased to announce the entry of HeritageBank of the South into the state of Alabama. Our Bank has built its reputation on strength, service and the ability to meet the needs of consumers and small business owners. We look forward to putting those values to work for our new customers in Auburn and Opelika.
"Less than 125 miles from our core market in Albany, the Auburn-Opelika market is very attractive for our bank," Dorminey continued. "It is highlighted by low unemployment, the cultural and intellectual impact of Auburn University, and the dynamic economic environment associated with the Kia Motors manufacturing plant and related suppliers in the area. Together, we believe these conditions, which make the Auburn-Opelika metropolitan statistical area one of the most attractive markets in the state, will support high future growth for the region in the future. With this acquisition to establish our presence in Auburn, HeritageBank of the South should benefit from the strong commercial climate there that, in turn, will translate into a strategic opportunity to expand our loan portfolio – in contrast with our earlier FDIC-assisted deals that had a greater impact on our deposit base."
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