Community First Bancorp. in Seneca, S.C., has agreed to buy SFB Bancorp in Elizabethton, Tenn.
The $494.5 billion-asset Community First said in a Friday press release that it will pay $8.3 million in stock for the parent of the $61.8 million-asset Security Federal Bank. SFB will also pay its shareholders a $2.8 million special dividend prior to the deal’s completion.
The transaction is expected to close in the first quarter. It will serve as Community First's entry into Tennessee.
Community First said it expects the deal to be immediately accretive to its earnings per share.
“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,” Richard Burleson, Community First’s president and CEO, said in the release.
Security Federal is “a well-run community bank with a great history and deep ties in the communities it serves,” Burleson added.
Community First was advised by D.A. Davidson and Brooks, Pierce, McLendon, Humphrey & Leonard. SFB was advised by Janney Montgomery Scott and Jones Walker.
