SmartBank plans to buy the Cleveland branch of FSG bank next year to expand its retail presence into Bradley County while FSG's new parent company, Atlantic Capital, focuses on more business and private banking.
In an announcement of the deal today, SmartFinancial Inc., the parent of SmartBank, said the purchase will add about $33 million in customer deposits and $32 million in loans and other assets affiliated with the Cleveland branch.
"This acquisition provides an incredible opportunity to expand our presence in Tennessee and introduce our brand and excellent client service to Bradley County," SmartBank President Billy Carroll said in a statement today. "Our expansion earlier this year into the Chattanooga market through the merger with Cornerstone Community Bank makes this FSG Bank branch acquisition in Cleveland a great strategic fit."
The change in the ownership of the Cleveland bank follows the purchase agreements announced last year by the Atlanta-based Atlantic Capital of FSG and the merger of the Knoxville-based SmartBank with the former Cornerstone Bank in Chattanooga earlier this year.
Michael Kramer, president and chief operating officer for Atlantic Capital, said retail customers in Cleveland will be well served by SmartBank and the sale will help Atlantic Bank focuses on business and higher wealth customers across its Georgia and Tennessee footprint.
"SmartBank brings a great understanding and knowledge of the East Tennessee community markets to our Cleveland client base," Kramer said. "Our clients have come to expect a 'hands-on, high touch' approach, and we are confident that SmartBank will deliver that same level of service to the market."
Douglas Williams, chief executive of Atlantic Capital, said the branch sale "will better position Atlantic Capital to continue to focus on our strategic objective of becoming a premier corporate, business and private bank serving metropolitan areas throughout the Southeast."
The acquisition, which is subject to customary closing conditions, including the receipt of all necessary regulatory approvals, is expected to be completed in the first quarter of 2017.