J. Lee StewartCOMPARING THE BANKSFirst Citizens National BankHeadquarters: Dyersburg, Tenn.Assets: $1.2 billionOffices: 21 branchesSize: 7th biggest bank in TennesseeStaff: 285 employees2013 earnings: $14.05 millionFounded: 1889Southern Heritage BankHeadquarters: Cleveland, Tenn.Assets: $237 millionOffices: Three branchesSize: Third biggest bank in Bradley CountyStaff: 64 employees2013 earnings: $2.8 millionFounded: 1999Source: Federal Deposit Insurance Corp.
The parent company of First Citizens National Bank in Dyersburg, Tenn., plans to acquire Southern Heritage Bank in Cleveland, Tenn., for $32.2 million in stock and cash.
Under the merger agreement announced Monday, Southern Heritage will retain its name and bank president J. Lee Stewart will continue to oversee the Cleveland bank operations.
First Citizens, Tennessee's seventh biggest bank with assets of nearly $1.2 billion in Middle and West Tennessee, will expand into East Tennessee for the first time with the purchase of the 15-year-old Southern Community Bank.
"We are incredibly exited about this partnership, which introduces First Citizens to the vibrant community of Cleveland and significantly expands our presence throughout Tennessee," Jeff Agee, president of CEO of First Citizens Bank, said in an announcement of the merger agreement approved by the boards of both banks. "We have long admired the banking culture of Southern Heritage, which is extraordinarily similar to our own."
The transaction, which officials hope to close in the third quarter after regulatory review and a vote by shareholders of Southern Heritage, is valued at $24.50 per share of Southern Heritage common stock. Southern Heritage shareholders may opt to either receive shares in First Citizens or cash for their holdings.
Founded in 1999, Southern Heritage operates three full-service banks in Bradley County. First Citizens was founded in 1889 and has 21 branches in eight counties.
Stewart said the merger with First Citizens "is significantly different from any that has occurred in our market area in the past." The Cleveland bank will retain its identity and the merger will allow Southern Heritage to join "a larger, high-performing, statewide, banking company with a remarkably similar culture and customer focus," Stewart said.
Contact Dave Flessner at dflessner@timesfreepress.com or at 757-6340.