Ameris Bancorp, a Moultrie – based banking company, said it will buy Savannah-based Coastal Bankshares for $36.7 million.
The deal, announced Tuesday, combines the Ameris and Coastal brands and results in a company with 74 locations. The combined company will have about $4.1 billion in assets, $2.8 billion in loans and $3.4 billion in deposits.
The acquisition comes as the banking industry continues to strengthen with higher profits and fewer problem assets.
Christopher Marinac, who follows banking trends at FIG Partners LLC, expects the consolidation to continue with larger banks acquiring smaller competitors that have limited capital to grow, or with banking companies looking for a partner because their boards are weary of trying to comply with stricter regulations.
A well-capitalized bank has more than 8 percent of assets in capital to grow the business, Marinac said. In Georgia, 49 of the 218 banks under Federal Deposit Insurance Corp. regulation have capital below 8 percent, and 20 have capital below 5 percent.
“Because of that they need to have an alternative plan to really operate the bank for the next five years,” he said.
Bank regulations have tightened since 2009, partly because of questionable lending practices that led to a collapse of the housing industry and a rash of bank failures in Georgia and around the country.
“Some banks have adjusted to it just fine, other banks have not,” Marinac said.
Even banks that were never on the verge of failing were still “stressed” and have had a difficult time recovering. Overall, however, banks are healthier today, with improved profits and fewer problem assets.
In December, Ameris received permission from the Federal Reserve to acquire The Prosperity Banking Co. in St. Augustine, Fla.
Marinac said businesses and consumers can benefit from consolidations because bigger banks can offer more loans and other services, at more locations.
Ameris has 68 branches in Georgia, Alabama, northern Florida and South Carolina. Coastal’s six locations are primarily in the Savannah area. The company also has loan offices in Richmond Hill and Statesboro.
The deal is expected to close in the third quarter.
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