HeritageBank of the South, a part of Heritage Financial Group Inc. (HBOS: Quote), Friday agreed with the Federal Deposit Insurance Corp., or FDIC, to acquire Frontier Bank, based in LaGrange, Georgia.
The Georgia Department of Banking and Finance closed Frontier Bank and appointed the FDIC as Receiver.
As a result of the deal, HeritageBank will assume about $224 million in deposits and acquire nearly $111 million in loans.
HeritageBank will not acquire any of Frontier Bank’s other real estate owned, and the deal does not involve a loss-share agreement, but is subject to an asset purchase discount of $34.8 million.
Three of Frontier Bank’s branches are strategically located for HeritageBank along the 40-mile corridor between LaGrange and Auburn, Alabama.
Six additional branches are located south and southeast of Birmingham, Alabama, marking HeritageBank of the South’s entry into this new market.
With the deal, HeritageBank will now operate 29 banking locations.
Keefe, Bruyette & Woods served as financial advisor to the company in this deal.
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by RTT Staff Writer
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