On Jan 20, Private Bancorp, Inc. (PVTB) announced the completion of sale of its Norcross branch to Heritage Financial Group, Inc. (HBOS). A definitive agreement related to the sale was signed by the companies in Oct 2014.
As per the deal, Private Bancorp will sell the Norcross, GA-based branch of its wholly-owned subsidiary, The PrivateBank, to Heritage Financial – the holding company for Heritage Bank of the South. Financial terms of the deal were, however, not divulged.
Nevertheless, the sale will be accretive to Private Bancorp’s 2015 first-quarter earnings. Based on the closing deposit balances of $107 million, and retail and small business loans totaling nearly $37 million, the company is expected to post gains of 3 cents per share from the sale.
Despite Atlanta being an important regional market for Private Bancorp, it believes that the Midwestern market holds much more promise from a branch perspective. Hence, the sale will further drive the company’s focus toward developing the commercial middle market business. Also, the company believes that the sale will not affect the clients of Atlanta Financial Center office.
On the other hand, Heritage Financial seeks to enhance its footprints in Atlanta with the branch acquisition. However, the company is set to be acquired by Renasant Corporation (RNST) during the third-quarter of 2015.
Private Bancorp currently carries a Zacks Rank #3 (Hold). MainSource Financial Group, Inc. (MSFG) is a better-ranked Midwest bank, sporting a Zacks Rank #1 (Strong Buy).
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