USAL Bancorp, Inc. (USAL), parent company of AmeriFirst Bank in Montgomery, Alabama (AmeriFirst), and Escambia County Bank of Flomaton, Alabama (ECB) have jointly announced their entry into an agreement and plan of merger, pursuant to which ECB will be merged with and into AmeriFirst.
In connection with this transaction, ECB shareholders will receive cash consideration and will also be issued a one-time special cash dividend prior to closing, subject to adjustments and certain requirements.
On a pro forma basis, based on financial information as of June 30, 2020, the combined company would have assets of approximately $275 million, loans of approximately $185 million, deposits of approximately $240 million and would operate five full-service branches in central and southern Alabama.
“Escambia County Bank is an extremely high-quality banking organization with a long history of serving the tri-counties area of southwest Alabama and northwest Florida,” said Bob Ramsey, AmeriFirst president and CEO. “We are very excited that ECB will be joining our team. AmeriFirst and ECB have a combined total of 200 years of service to our communities and we look forward to continuing that tradition and building on it.”
Jim McCutchin, president and CEO of ECB, said, “We are proud to partner with AmeriFirst as their culture is very similar to our own. We believe this merger is an excellent fit for our customers, team members, shareholders and the communities we serve.”
J.R. Jones, chairman of ECB, said, “On behalf of the board and shareholders of Escambia County Bank, we could not be more excited to partner with AmeriFirst. We particularly appreciate AmeriFirst’s recognition of the deep roots Escambia County Bank has in our communities.”
The transaction, which has been approved unanimously by each company’s board of directors, remains subject to customary closing conditions including the approval of ECB’s shareholders and the receipt of required regulatory approvals. The transaction is expected to close no later than the first quarter of 2021.