Ameris Bank is buying Coastal Bankshares, Inc., the parent company of The Coastal Bank, of Savannah.
Coastal operates six branches, five of which are concentrated in Savannah, and one in Hinesville. Coastal also operates mortgage loan production offices in Richmond Hill and Statesboro.
The deal will move Ameris from 12th to 5th in deposit market share in the Savannah market.
"We are excited to announce our merger with Coastal and are looking forward to welcoming the Coastal team to Ameris," said Edwin W. Hortman, Jr., President and Chief Executive Officer of Ameris. "We believe our combined efforts in the Savannah market will result in even greater service for our customers."
Coastal shareholders will receive 0.4671 shares of Ameris common stock for each share of Coastal common stock. The transaction is valued at approximately $36.7 million in the aggregate, or $10.00 per Coastal share, based on Ameris' average closing stock price of $21.41 for the three days ending March 7, 2014.
The merger agreement has been unanimously approved by the board of directors of each company. The transaction is expected to close early in the third quarter of 2014 and is subject to customary closing conditions, regulatory approvals and approval by Coastal shareholders.