Citizens Tri-County Bank will expand its presence into Franklin County by buying another one of its rival banks this summer.
Sequatchie Valley Bancshares Inc., the parent company of Citizens Tri-County Bank based in Dunlap, Tenn., is buying Franklin County United Bancshares, the parent company of Franklin County United Bank with offices in Decherd and Cowan, Tenn.
The purchase is the ninth for Citizens Tri-County since the bank began in 1972 as the Citizens Bank of Dunlap and Pikeville. The purchase will boost Citizens Tri-County Bank, which took on its name in 1992 after previous bank acquisitions, to $805 million in assets served by two dozen offices across nine counties.
Citizens Tri-County currently operates banks in Bledsoe, Coffee, Grundy, Hamilton, Marion, Sequatchie, Van Buren and Warren counties.
Franklin County United Bank, which began in 2004, reported assets of $77.8 million at the end of 2015. The bank's 24 employees work at two offices.
Last year, Franklin County United lost $290,000. But Citizens Tri-County Bank reported net income of more than $10 million in 2015.
"We are very excited about the expansion of our bank into Franklin County as part of our strategic plan," said John V. Barker, president of Citizens Tri-County Bank. "This transaction provides the opportunity to expand our team with the addition of experienced and talented associates while serving the needs of new and current customers across several contiguous counties. We look forward to continuing to build great relationships in all of the communities we serve."
Clinton Swafford, chairman of Franklin County United Bancshares, said the merger results in a positive outcome for our shareholders, and we feel confident that our valued customers will enjoy banking with a larger community bank with greater product offerings."
"We were delighted to partner with such a reputable, high performing financial institution," he said.
Terms of the acquisition were not announced.
The merger is expected to be completed in the third quarter, subject to regulatory approvals and other customary closing conditions.
The shareholders of Franklin County United Bancshares Inc. overwhelmingly approved the transaction at a special meeting of shareholders at the end of last month.
Citizens Tri-County Bank said it will retain the current employees of the acquired bank.
Citizens Tri-County Bank is being advised in the transaction by Bone McAllester Norton PLLC as legal counsel and has received special consulting from SunTrust Robinson Humphrey. Franklin County United is being advised by Butler Snow LLP as legal counsel.
Contact Dave Flessner at email@example.com or 423-757-6340.
This story was updated April 5 at 10:50 p.m. with more information.