February 11, 2016 Share

Merger announced for two of DeKalb County’s leading banks

                                                                                            First State Bank of DeKalb County to acquire First Bank of the South

First State Bank
Fort Payne, Ala.—News of an acquisition involving two of North Alabama’s leading banking institutions was made public today. First State Bancshares of DeKalb County, Inc., Fort Payne, Alabama, the parent bank holding company for First State Bank of DeKalb County, Inc., announced that an agreement had been reached for the company to acquire First Rainsville Bancshares, Inc., Rainsville, Alabama, and its wholly-owned subsidiary, First Bank of the South. Company officials indicated that following the acquisition, First Bank of the South will merge with and into First State Bank of DeKalb County.

Upon completion of these transactions, First State Bank of DeKalb County, which currently operates from two locations in Fort Payne, will expand its footprint into Marshall County and strengthen its presence in DeKalb County with the addition of three First Bank of the South locations. First Bank of the South, which operates from branches in Rainsville, Henagar and Grant, has approximately $83.6 million in total assets and approximately $74.8 million in total deposits. Following the merger of the banks, First State Bank of DeKalb County will have approximately $182 million in total assets and $158 million in deposits.

Benji Willmon, Chairman and Chief Executive Officer of First Bank of the South, stated, “This new partnership with First State Bank of DeKalb County provides an outstanding opportunity for both the customers and shareholders of First Bank of the South.”

David Henderson, President and Chief Executive Officer of First State Bank of DeKalb County, said, “We have a strong commitment to our local community, and take pride in knowing all of our customers by name. With this acquisition we will become the largest home-owned bank in DeKalb County and look forward to providing all our customers with improved products, technology offerings, and service.”

Established in 1981, First State Bank of DeKalb County, Inc. was established by a local Board of Directors and is locally owned and operated. First State Bank has distinguished itself as a full-service true “hometown bank,” promoting the well-being of the communities it serves.  Henderson also noted the advantage of having the flexibility to meet the needs the bank’s customers in a prompt manner without seeking “out of town” approval. “Our Board of Directors, Officers and Employees take pride in the fact that decisions are made by your neighbors and friends who are aware of the needs of our area,” Henderson said.

Closing of the acquisition, which is expected to occur in the third quarter of 2016, is subject to customary conditions, including regulatory approval and approval by the shareholders of First Rainsville Bancshares, Inc.

 

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