(By Balaseshan) SCBT Financial Corp. (NASDAQ:SCBT) said it has agreed to buy Savannah Bancorp Inc. (NASDAQ:SAVB) for about $67.1 million under a definitive merger agreement, strengthening their offering to the residents of South Carolina and Georgia.
At closing, Savannah will be merged into SCBT Financial. Under the terms of the agreement, shareholders of Savannah will receive 0.2503 shares of SCBT common stock for each share of SAVB common stock.
The stock issuance is valued at about $67.1 million in the aggregate, based on 7.2 million shares of SAVB common stock outstanding and on SCBT's August 7 closing stock price of $37.21.
The merger agreement has been unanimously approved by the board of directors of each company. The transaction is expected to close in the fourth quarter of 2012 and is subject to customary conditions, including approval by both SCBT and SAVB shareholders.
Upon completion of the transaction, the combined company will have about $5.3 billion in total assets, $4.5 billion in total deposits, $3.8 billion in total loans, and a network of 87 branches in the Carolinas and Georgia.
The two companies currently serve four common counties in South Carolina and Georgia, where, on a pro forma basis, the combined company will have $1.2 billion in deposits earning it the #3 ranking in market share.
Savannah Bancorp also operates Minis & Co., Inc., a registered investment advisor. Minis & Co. Inc., combined with SCBT's existing Wealth Management Group, will have total assets under management of about $1.6 billion.
SAVB jumps 58.02% to $8.77 on Wednesday, while SCBT falls 1.45% to $36.67.