SmartBank has signed an agreement to acquire the Cleveland branch office and assets of FSG Bank.
"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 and CEO Billy Carroll said in a prepared statement. "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."
Officials with SmartFinancial Inc. and Atlantic Capital Bancshares Inc. made the announcement Friday that SmartBank signed a definitive agreement for the acquisition. SmartFinancial Inc. is SmartBank’s parent company, and Atlantic Capital Bancshares Inc. is the parent company of Atlantic Capital Bank.
The Cleveland FSG branch is a division of Atlantic Capital Bank.
SmartBank has agreed to assume about $33 million in customer deposits and purchase about $32 million in loans and other assets affiliated with the Cleveland branch.
The sale and acquisition of this branch will steer both Atlantic Capital Bank and SmartBank toward their goals of becoming banking leaders in the Southeast, officials said in a news release.
"SmartBank brings a great understanding and knowledge of the East Tennessee community markets to our Cleveland client base," Atlantic Capital’s President and Chief Operating Officer Michael Kramer said in a prepared statement. "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."
Atlantic Capital Chief Executive Officer Douglas Williams said that the transaction will better position Atlantic Capital to focus on the strategic objective of becoming "a premier corporate, business and private bank serving metropolitan areas throughout the Southeast."
SmartFinancial Chairman Miller Welborn added, "Seizing smart growth opportunities like this will help get us one step closer to becoming the Southeast’s next great community banking franchise."
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.