Boston, MA 03/14/2014 (wallstreetpr) –
Ameris Bancorp (NASDAQ:ABCB) has entered an acquisition agreement which will effectively bolster its position and allow it to better serve customers and return more value to investors. That agreement involves the acquisition of Coastal Bankshares Inc.
Shares of Ameris Bancorp (NASDAQ:ABCB) last changed hands at $23.52, up 0.21 percent. It was a day of large volume trading and earlier in the day shares were traded in the range of $22.85 to $23.67.
Ameris Bancorp (NASDAQ:ABCB) has been witnessing nice trend in its stock as investor confidence returns to the strengthening banking sector.
The acquisition and what its holds for the future
Ameris Bancorp (NASDAQ:ABCB) will pay $36.7 million to bring Coastal Bankshares to its fold, and this will immediately boost its presence in Savannah, Ga.
Once the deal is closed as it is expected to in the third quarter, the resulting combined company will have assets of about $4.1 billion, $3.4 billion in deposits and $2.8 billion in loans. The transaction will also increase the company’s branch network to 74 locations in four states.
Taking over Coastal Bankshares will also enable Ameris Bancorp (NASDAQ:ABCB) to improve its deposit market share position in Savannah from the current No. 12 to No. 5. Ameris Bancorp (NASDAQ:ABCB) which has currently has 68 locations spread across Gerogia, northern Florida, South Carolina and Alabama, posted profit growth of 39 percent to $20 million in 2013.
Changing landscape
The acquisition of Coastal Bankshares goes beyond an ordinary business acquisition by Ameris Bancorp (NASDAQ:ABCB). Instead, it seems aimed at helping the two bank institutions to comply with new tight bank regulations.
Regulators have been tough on bank operators in efforts that are clearly aimed at avoiding the repeat of the problems that led to the trouble in the housing industry five years ago. Thus, Ameris Bancorp (NASDAQ:ABCB) and many other banks across the U.S. are looking to consolidation as one of the ways to remain compliant with the regulations.
