Posted October 16, 2020
SENECA, S.C. - October 12, 2020 - ( Newswire.com )
Community First Bancorporation, Seneca, SC (“Community First”) (OTC: CFOK), the parent company of Community First Bank, and SFB Bancorp, Inc., Elizabethton, Tennessee (“SFB”) (OTC: SFBK), the parent company of Security Federal Bank, jointly announced on Friday, October 9, 2020 the signing of a definitive agreement for Community First to acquire SFB in a cash transaction. The combined company will have approximately $575 million of assets and 12 offices serving South Carolina, North Carolina and Tennessee. The transaction was unanimously approved by the Board of Directors of each company. It is expected to close in the first quarter of 2021, subject to approvals from federal and state bank regulatory agencies and SFB’s shareholders.
SFB’s shareholders will receive cash of approximately $8.3 million or $33.00 for each share of common stock held by them. Additionally, immediately prior to the effectiveness of the merger, SFB will pay a special dividend on its outstanding common stock of approximately $2.8 million or $11.00 per share. The merger is expected to be immediately accretive to Community First’s earnings per share, excluding transaction costs.
Upon completion of the merger, Community First will establish an East Tennessee Advisory Board composed of the non-employee members of the board of directors of Security Federal Bank who choose to serve on such an Advisory Board.
Richard D. Burleson, President and Chief Executive Officer of Community First, stated: “Community First is excited to enter eastern Tennessee through our acquisition of SFB. This transaction will position us well for future growth in markets in eastern Tennessee and western North Carolina as we bridge our footprint across these portions of these states and South Carolina. We are pleased to partner with Security Federal Bank, a well-run community bank with a great history and deep ties in the communities it serves.”