Printer Friendly

SOUTHERN NATIONAL, HOME FEDERAL OF STATESVILLE AGREE TO MERGE

 LUMBERTON, N.C., June 22 /PRNewswire/ -- Southern National Corporation (NYSE: SNB) and Home Federal Savings Bank of Statesville have announced an agreement in principle to merge in a stock swap valued at $18.2 million. Home Federal, with $100 million in assets, also has offices in Taylorsville and Troutman.
 The purchase of Home Federal, along with the pending acquisition of Davidson Savings Bank, SSB in Statesville, will increase Southern National's market share in Statesville to 17 percent and improve its ranking there from 11th to third. Home Federal's three offices will become Southern National offices.
 "We're extremely pleased with our decision to join forces with a top quality banking organization," said Ronald W. Hawkins, president and chief executive officer of Home Federal. "We believe that the merger with Southern National Bank is not only in the best interest of our employees and shareholders, but our customers as well. They will have access to a more comprehensive selection of products as well as 127 banking locations in North Carolina."
 Southern National, with $5.2 billion in assets, also has mergers pending with East Coast Savings Bank in Goldsboro and Regency Bancshares Inc. of Hickory. Regency is the parent company for First Savings Bank, SSB of Hickory and Davidson Savings Bank, SSB of Lexington. The consummation of all three mergers will increase Southern National's assets to $5.8 billion.
 Based on Southern National's closing stock price on June 21 of $21, the exchange ratio would be 2.4621 shares of Southern National stock for each of the 352,000 outstanding shares and options of Home Federal, providing Home Federal shareholders a value of $51.70 per share. The exact exchange ratio will be determined at the end of a pricing period just prior to closing and will be based on the then outstanding shares and options. However, the Southern National stock price used in calculating the exchange ratio will not be less than $18.48 nor greater than $23.52.
 Home Federal has granted Southern National an option to purchase 63,680 shares at a price of $30 per share. The merger is subject to negotiation of a definitive agreement and approval by regulators and shareholders of Home Federal. Closing is expected to be in early 1994.
 For the nine months ended March 31, 1993, Home Federal reported earnings of $1.7 million, return on assets of 2.15 percent and earnings per share of $5.16. Its equity-to-assets ratio was 9.1 percent.
 "Home Federal is exactly the type of healthy, reputable institution we look for in a partner," said Southern National Chairman Glenn Orr. "They have strong management, hard-working, dedicated employees and a loyal customer base. They are an excellent franchise with a quality loan portfolio.
 "We are especially pleased with the prospect of becoming number three in the Statesville market and with securing a major position in the northern Lake Norman market," Orr said.
 Southern National, founded in 1897, has 158 offices in 84 cities and communities in North and South Carolina.
 -0- 6/22/93
 /CONTACT: Bob Denham, Public Relations, 919-773-7363, or John R. Spruill, Chief Financial Officer, 919-671-2530, both of Southern National Corporation, or Ronald W. Hawkins, President and CEO of Home Federal Savings Bank of Statesville, 704-873-4363/
 (SNB)


CO: Southern National Corporation; Home Federal Savings Bank of
 Statesville ST: North Carolina IN: FIN SU: TNM


CM -- CH005 -- 4654 06/22/93 15:10 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 22, 1993
Words:568
Previous Article:RENOUARD NAMED TO HEAD BOEING EVERETT DIVISION
Next Article:CAROLINA FIRST ENTERS INTO AGREEMENT WITH FIRST SUN MORTGAGE
Topics:


Related Articles
SOUTHERN NATIONAL, WORKMEN'S BANCORP AGREE TO MERGE
FEDERAL RESERVE BOARD APPROVES VERMONT FINANCIAL SERVICES AND WEST MASS BANKSHARES MERGER
AMFED FINANCIAL COMPLETES ACQUISITION OF HOME FEDERAL BANK
SOUTHERN NATIONAL ANNOUNCES BRANCH CONSOLIDATIONS
Jackson Federal Bank Expands with Purchase.
Jackson National Life(R) Completes Purchase of Highland Bancorp.
Jackson Federal Bank(SM) Completes Purchase of Highland Bancorp.
Jackson Federal Bank to Acquire Highland Bancorp.
Standard Federal and Michigan National to Operate Under The Name Standard Federal Bank After Systems Conversion.
New Standard Federal Bank to Have the Largest Branch And ATM Networks in Michigan.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters