Pinnacle Financial Corporation (Pinnacle), the parent holding company of Pinnacle Bank, and Liberty First Bank (Liberty), announced last week the signing of a definitive merger agreement pursuant to which Pinnacle will acquire Liberty in a cash and stock transaction valued at approximately $19.1 million in the aggregate, or a price of approximately $16.50 for each outstanding share of Liberty common stock.
Management of each bank believes the combined bank will be able to achieve greater scale and provide deep and broad service to the Walton County community as a result of this combination.
The customers and shareholders of Pinnacle Bank and Liberty will benefit from having multiple locations to serve customers in this growing community.
Liberty operates one banking office in Monroe where Pinnacle has also operated since 2007. Liberty will add approximately $183 million in assets, $72 million in loans, and $168 million in deposits to Pinnacle.
Upon completion of this transaction, Pinnacle will have approximately $1.8 billion in assets, $1.1 billion in loans and $1.6 billion in deposits, based on financials reported as of March 31, 2021.
“We are excited to announce the combination of Pinnacle and Liberty,” said, L. Jackson McConnell, Jr., Chief Executive Officer of Pinnacle. “This transaction will allow us to partner with an excellent financial institution sharing our commitment to serving Walton County and other Georgia communities. Our partnership with Liberty furthers our strategy of expanding in our current markets where there is community excitement and growth. We view the acquisition of Liberty as a natural complement to our current growth initiatives and to be an opportunity to deliver our core services to a greater number of community bank customers. We look forward to welcoming our new customers and employees in a community about which we are already enthusiastic.”
Dawn Griffin, Chief Executive Officer of Liberty, added, “We are delighted to partner with a bank actively serving its customers and communities with distinction since 1934,” said Dawn Griffin, Chief Executive Officer of Liberty. “Our customers will benefit by the increased market share served by the combined bank, as well as the greater breadth and depth of products and services offered as part of this combination. Pinnacle is a true community bank and decisions will continue to be made locally by bankers with a vested interest in our customers’ businesses and community.”
The transaction, which is expected to close in the last quarter of 2021, has been unanimously approved by the boards of directors of both companies and is subject to customary closing conditions, including regulatory approvals, and approval from the shareholders of Liberty.
After the merger, Mr. McConnell will continue to serve as Chief Executive Officer of Pinnacle. Lee Garrett will serve as a Senior Market Executive within Pinnacle, with the primary responsibility of overseeing the communities currently served by Liberty.
Lee leads a team of experienced bankers at Liberty who are excited about the new opportunities with Pinnacle.