COLUMBIA, S.C.--(BUSINESS WIRE)--
South State Corporation (NASDAQ: SSB) announced today the completion of
its merger with Park Sterling Corporation (NASDAQ: PSTB).
Under the terms of the merger agreement, Park Sterling shareholders will
receive 0.14 shares of South State common stock in exchange for each
Park Sterling share outstanding immediately prior to the merger. Park
Sterling Bank, the Park Sterling Corporation bank subsidiary, has merged
with South State Bank, a South Carolina banking corporation and the
wholly owned banking subsidiary of South State Corporation.
“We are pleased to announce the completion of this merger with Park
Sterling and look forward to welcoming their employees and customers to
South State,” said Robert R. Hill, Jr., CEO of South State Corporation.
“This is a significant step forward in accomplishing our vision to build
a quality regional bank in the Southeast.”
With this merger, South State Corporation has assets over $14 billion
and a market capitalization of approximately $3 billion.
“We are proud to partner with South State and this combination will
fulfill the vision we laid out in 2010,” said James C. Cherry, CEO of
Park Sterling Corporation. “Together, we have the scale and resources
necessary to deliver value-added services to our customers.”
As a result of the merger, 53 locations will be added to the South State
footprint, 5 in Georgia, 23 in South Carolina, 17 in North Carolina and
8 in Virginia. This provides increased accessibility and convenience for
customers with 170 locations and over 200 ATMs throughout South State’s
banking network. South State anticipates that the system conversion and
transition of Park Sterling branch signage will occur in the second
quarter of 2018.
In addition, in connection with the merger, Cherry and Jean E. Davis, a
former director of Park Sterling, have been appointed to the South State
Corporation and Bank Board of Directors. Cherry has served as CEO of
Park Sterling Corporation since its inception. Prior to Park Sterling,
he served in numerous executive roles for Wachovia Corporation. Cherry
is currently a director of Armada Hoffler Properties, Inc. (NYSE:AHH), a
Virginia-based REIT.
Davis has been a director of Park Sterling Corporation since 2011. In
2006, she retired from Wachovia Corporation as Head of Operations,
Technology and e-Commerce. She currently chairs both the Safe Alliance
Board of Directors and the Charlotte Latin School Board of Trustees.
Information about the customer transition is available at SouthStateBank.com.
South State Corporation (NASDAQ: SSB) is a financial services company
headquartered in Columbia, South Carolina, with over $14 billion in
assets. South State Bank, the company’s primary subsidiary, provides
consumer, commercial, mortgage and wealth management solutions
throughout the Carolinas, Georgia and Virginia. South State has served
customers since 1934. Additional information is available at SouthStateBank.com.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Statements included in this communication, which are not historical in
nature are intended to be, and are hereby identified as, forward looking
statements for purposes of the safe harbor provided by Section 27A of
the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward looking statements generally include words such as
“expects,” “projects,” “anticipates,” “believes,” “intends,”
“estimates,” “strategy,” “plan,” “potential,” “possible” and other
similar expressions. South State Corporation (“South State”) cautions
readers that forward looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from
anticipated results. Such risks and uncertainties, include, among
others, the following possibilities: (1) the outcome of any legal
proceedings instituted against South State or Park Sterling Corporation
(“Park Sterling”); (2) the possibility that the anticipated benefits of
the transaction are not realized when expected or at all, including as a
result of the impact of, or problems arising from, the integration of
the two companies or as a result of the strength of the economy and
competitive factors in the areas where South State and Park Sterling do
business; (3) the possibility that the transaction may be more expensive
to complete than anticipated, including as a result of unexpected
factors or events; (4) diversion of management’s attention from ongoing
business operations and opportunities; (5) potential adverse reactions
or changes to business or employee relationships, including those
resulting from the announcement or completion of the transaction; (6)
South State’s ability to complete the integration of Park Sterling
successfully; (7) credit risks associated with an obligor’s failure to
meet the terms of any contract with the bank or otherwise fail to
perform as agreed under the terms of any loan-related document; (8)
interest risk involving the effect of a change in interest rates on the
bank’s earnings, the market value of the bank’s loan and securities
portfolios, and the market value of South State’s equity; (9) liquidity
risk affecting the bank’s ability to meet its obligations when they come
due; (10) risks associated with an anticipated increase in South State’s
investment securities portfolio, including risks associated with
acquiring and holding investment securities or potentially determining
that the amount of investment securities South State desires to acquire
are not available on terms acceptable to South State; (11) price risk
focusing on changes in market factors that may affect the value of
traded instruments in “mark-to-market” portfolios; (12) transaction risk
arising from problems with service or product delivery; (13) compliance
risk involving risk to earnings or capital resulting from violations of
or nonconformance with laws, rules, regulations, prescribed practices,
or ethical standards; (14) regulatory change risk resulting from new
laws, rules, regulations, accounting principles, proscribed practices or
ethical standards, including, without limitation, increased capital
requirements (including, without limitation, the impact of the capital
rules adopted to implement Basel III), Consumer Financial Protection
Bureau rules and regulations, and potential changes in accounting
principles relating to loan loss recognition; (15) strategic risk
resulting from adverse business decisions or improper implementation of
business decisions; (16) reputation risk that adversely affects earnings
or capital arising from negative public opinion; (17) terrorist
activities risk that results in loss of consumer confidence and economic
disruptions; (18) cybersecurity risk related to the dependence of South
State and Park Sterling on internal computer systems and the technology
of outside service providers, as well as the potential impacts of third
party security breaches, subjects each company to potential business
disruptions or financial losses resulting from deliberate attacks or
unintentional events; (19) economic downturn risk potentially resulting
in deterioration in the credit markets, greater than expected
non-interest expenses, excessive loan losses and other negative
consequences, with risks could be exacerbated by potential negative
economic developments resulting from federal spending cuts and/or one or
more federal budget-related impasses or actions; (20) greater than
expected noninterest expenses; (21) excessive loan losses; (22) failure
to realize synergies and other financial benefits from, and to limit
liabilities associated with, mergers and acquisitions within the
expected time frame; (23) potential deposit attrition, higher than
expected costs, customer loss and business disruption associated with
merger and acquisition integration, including, without limitation,
potential difficulties in maintaining relationships with key personnel
and other integration related-matters; (24) the risks of fluctuations in
market prices for South State common stock that may or may not reflect
economic condition or performance of South State; (25) the payment of
dividends on South State common stock is subject to regulatory
supervision as well as the discretion of the board of directors of South
State, South State’s performance and other factors; and (26) other risks
and uncertainties disclosed in South State’s or Park Sterling’s most
recent Annual Report on Form 10-K filed with the U.S. Securities and
Exchange Commission (“SEC) or disclosed in documents filed or furnished
by South State or Park Sterling with or to the SEC after the filing of
such Annual Reports on Form 10-K, and of which could cause actual
results to differ materially from future results expressed, implied or
otherwise anticipated by such forward-looking statements.
All forward-looking statements speak only as of the date they are made
and are based on information available at that time. South State does
not undertake any obligation to update or otherwise revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise, except as required by federal securities
laws. As forward-looking statements involve significant risks and
uncertainties, caution should be exercised against placing undue
reliance on such statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171201005112/en/
South State Corporation
Media Contact:
Kellee McGahey,
843-529-5574
or
Investor Contact:
Jim Mabry,
843-529-5593
Source: South State Corporation