Fidelity BancShares has entered into a definitive agreement to acquire Affinity Bank. The transaction is valued at approximately $142.8 million and will be conducted as a cash and stock deal.

Upon completion of the acquisition, Affinity Bank will merge into Fidelity BancShares, and its banking subsidiary will merge into Fidelity Bank. The combined entity is expected to have total assets of approximately $3.1 billion and total deposits of roughly $2.7 billion, based on figures as of September 30, 2023.

John L. Wilson, CEO of Fidelity BancShares, stated that the acquisition is expected to enhance Fidelity's market presence and expand its geographic reach. He added that the deal is anticipated to be accretive to Fidelity's tangible book value per share in approximately 1.5 years and to its earnings per share in the first full year following the transaction.

The acquisition is subject to customary closing conditions, including the approval of Fidelity BancShares' and Affinity Bank's shareholders, as well as regulatory approvals. Both companies anticipate closing the transaction in the second quarter of 2024.

Key Takeaways

• Fidelity BancShares plans to acquire Affinity Bank for $142.8 million in a cash and stock transaction.
• The combined entity will have approximately $3.1 billion in assets and $2.7 billion in deposits.
• The acquisition is expected to be accretive to earnings per share and tangible book value per share.
• Shareholder and regulatory approvals are required, with an expected closing in the second quarter of 2024.

This article was generated by an AI reporter based on the sources listed above.