PrivateBancorp, Inc. (PVTB) announced the signing of a definitive agreement with Heritage Financial Group, Inc. (HBOS) for the sale of a branch in Norcross, Georgia owned by its wholly owned subsidiary The Private Bank. The financial terms of the deal were not divulged.
The Atlanta branch to be sold comprises around $129 million in deposits and $40 million in loans from retail and small business banking clients. The deal, which is subject to regulatory approval and other customary conditions, is expected to be concluded in the fourth quarter of 2014.
At the time of completion, PrivateBancorp anticipates a one time profit of around 3 to 4 cents per share from this sale. However, according to the company, this transaction is not expected to affect clients related to its commercial middle market business development office in the Atlanta Financial Center.
Following the announcement, shares of the company rose 1.3%, backing management’s perspective regarding the advantage from this sale. According to PrivateBancorp, sale of this branch will prove to be beneficial and further impel the company’s focus on developing its commercial middle market business.
For Heritage, this deal will enhance its presence in Atlanta in the form of a first retail banking branch. The Southeast bank, which has grown significantly over the years through acquisitions, looks forward to capitalize on the small and medium sized business opportunities available in Atlanta. The company may continue to use the services of the employees presently working in the branch office.
Currently, PrivateBancorp holds a Zacks Rank #1 (Strong Buy). Other Midwest banks worth considering include First Citizens Banc Corp. (FCZA) and Eagle Bancorp Montana, Inc. (EBMT). While First Citizens Banc sports the same rank as PrivateBancorp, Eagle Bancorp carries a Zacks Rank #2 (Buy).
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