ATLANTA, July 9 /PRNewswire/ -- Premier Bancshares, Inc. (Amex: PMB) and
Frederica Bank & Trust (Frederica) today jointly announced that they have
executed a definitive agreement for Premier Bancshares, Inc. to acquire all of
the outstanding shares of stock of Frederica. The value of the transaction is
approximately $24,670,000 based on the closing price of $27.75 for Premier's
common stock yesterday.
The acquisition, which is subject to regulatory approval and the approval
of Frederica's shareholders, is expected to close in the fourth quarter of
this year. Following this transaction, Premier will have assets of
approximately $1.4 billion.
Frederica is a state chartered community bank operating in Glynn County,
Georgia, with assets of approximately $72 million. The bank's sole location
is on St. Simons Island where it currently holds approximately 25% of the
area's deposits; giving it a number one ranking in this market.
Following the acquisition of Frederica, Premier Bancshares, Inc. will be
the third largest bank holding company headquartered in Georgia, and, after
pending consolidations, will have the following subsidiaries operating
42 offices: Premier Bank in metro Atlanta and St. Simons Island, Central and
Southern Bank in Milledgeville and Greensboro, Georgia, and Premier
Lending Corporation, a provider of residential mortgage loans and asset-based
commercial finance loans to the metro Atlanta area, Mobile, Alabama;
Charleston, South Carolina; and Jacksonville, Florida.
Premier Bancshares' Chairman and Chief Executive Officer, Darrell D.
Pittard, said, "We consistently try to bring into Premier companies that are
based in vibrant economic markets which are managed by experienced bankers who
have a loyal following among customers. The acquisition of Frederica Bank &
Trust certainly meets those criteria. The addition of Frederica Bank & Trust
to Premier Bancshares, Inc. will give Premier an initial presence in the
Coastal Georgia market, an area which has a high potential for continued
population growth."
G. Rodney Lueth, President of Frederica Bank & Trust, said, "We are
extremely excited about our new affiliation with Premier Bancshares. As a
Georgia-based holding company, Premier provides us with the ability to
effectively compete with larger banks in mortgage origination, commercial real
estate lending, and construction lending. We will now have the resources to
expand our operations in Coastal Georgia and provide additional services to
our customers." After the merger, Rod Lueth will remain as President of
Frederica Bank & Trust.
On July 2, 1998, Premier Bancshares, Inc. announced that it had completed
the acquisition of The Bank Holding Company (BHC). First Community Bank of
Henry County, and The Bank of Spalding, former subsidiaries of BHC, became
subsidiaries of Premier Bancshares, Inc. On July 1, 1998, Premier Bancshares,
Inc. announced that it had completed the acquisition of Button Gwinnett
Financial Corporation (Button Gwinnett). Button Gwinnett's former subsidiary,
The Bank of Gwinnett, will operate as a subsidiary of Premier Bancshares until
it is merged into Premier Bank later this year.
Both the common stock of Premier Bancshares, Inc. and the preferred
securities of Premier Capital Trust I are traded on the American Stork
Exchange under the symbols PMB and PMB-PR, respectively. Additional financial
information regarding Premier Bancshares, Inc. and the acquisition of
Frederica Bank & Trust is available from Michael E. Ricketson, Executive Vice
President and Chief Financial Officer of Premier Bancshares, Inc. at
(770) 476-3209.
With the exception of historical information, the matters discussed in
this news release are forward-looking statements that involve risks and
uncertainties.
SOURCE Premier Bancshares, Inc.
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Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 283325
CONTACT:
Darrell D. Pittard, Chairman and Chief
Executive Officer, Premier Bancshares, Inc., 404-814-3090, or G.
Rodney Lueth, President and Chief Executive Officer, Frederica
Bank & Trust, 912-638-2265
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