Southern States Bancshares, Inc. (NASDAQ: SSBK) and CBB Bancorp have officially announced their merger agreement.

Under this agreement, Southern States will acquire CBB Bancorp, integrating it into its operations. Following the completion of the merger, Southern States will emerge as the surviving entity, absorbing CBB Bancorp and its subsidiary, Century Bank of Georgia, into its structure.

The transaction, expected to finalize in the third quarter of 2024 pending regulatory approval, signifies a significant expansion for Southern States Bank.

Upon the conclusion of the merger, Southern States Bank anticipates an increase in its assets to approximately $2.8 billion, with $2.3 billion in deposits and $2.0 billion in loans. The bank will operate 15 full-service branches and two loan production offices across Alabama and Georgia, with a notable 48% of its deposits concentrated in Georgia, particularly in the thriving Atlanta metro market.

Mark A. Chambers, President and CEO of Southern States, expressed enthusiasm about the merger, highlighting its strategic alignment with the company’s growth plans. He emphasized the potential synergies and the bolstering of the bank’s presence in Georgia, anticipating benefits for customers, employees, and stakeholders alike.

“This compelling merger with Century Bank will bolster our presence in Georgia and align perfectly with our strategic plan of pursuing disciplined M&A in high growth markets. We believe Century Bank’s solid core deposit base and strong liquidity position will further strengthen the combined bank’s balance sheet and enhanced franchise value,” said Chambers.

Century Bank of Georgia, established in 2000, operates two branches in Cartersville and Rockmart. As of December 31, 2023, it reported total assets of approximately $310 million, with a strong deposit base and a leading market share in Bartow County.

The terms of the merger agreement allow CBB Bancorp shareholders to choose between receiving 1.550 shares of Southern States common stock or $45.63 in cash for each share of CBB Bancorp common stock they hold. Cash elections are subject to proration to ensure fairness. The exchange ratio remains fixed, although the overall transaction value may fluctuate based on Southern States’ stock price.

Keefe, Bruyette & Woods, Inc. acted as financial advisor to Southern States, while Jones Walker LLP provided legal counsel. Performance Trust Capital Partners served as financial advisor to Century Bank, offering a fairness opinion to its board of directors, with legal counsel provided by Troutman Pepper Hamilton Sanders LLP.