Palmetto Citizens expands into Georgia with branch deal

A Midlands-based credit union has acquired the Georgia assets of an Upstate financial institution.

Southern Financial Corp. and Southern Bank have entered into a definitive agreement to sell their Georgia branches to Palmetto Citizens Federal Credit Union, according to a news release.

Palmetto Citizens will acquire the physical locations and most of the deposit and loan accounts associated with Southern Bank’s four branches located in Georgia. Upon consummation of the transaction, Southern Bank will continue to operate as an independent community bank, the release stated.

As of Sept. 30, the deposits and loans to be conveyed to Palmetto Citizens were approximately $83 million and $20 million, respectively, according to the release. Palmetto Citizens plans to hire all current Southern Bank employees at each of the acquired branches.

Southern Financial Corp. estimates that the transaction will be accretive to its tangible book value per share in a range of $0.75 to $1 at the closing, the release stated.

“As Southern Bank has evolved into a commercially focused community bank over the past couple years, we began assessing our options related to portions of our enterprise that did not entirely fit the new business plan,” said Jamin Hujik, executive vice chairman of Southern Bank. “Once identified, we set out to find the best possible overall result for our shareholders, team members, customers and communities related to that portion of our business. The sale of our Georgia branches to Palmetto Citizens will provide additional capital for the continued growth of the bank for shareholders and a strong consumer and community focused partner for our team members, customers and communities.”

The transaction is expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals.

“For nearly 90 years, Palmetto Citizens has stood for trust, stability, and care for our members and the communities we serve,” said Robert Dozier, president & CEO of Palmetto Citizens, in the release. “This agreement represents an exciting opportunity to build on that legacy by thoughtfully expanding our service beyond South Carolina and into Georgia. We look forward to welcoming these new members into the Palmetto Citizens family and providing them with the same personal, community-focused service and value that have long defined who we are.”

Until the transaction closes, it will be business as usual for customers of both financial institutions. Upon the transaction’s closing, Southern Bank’s Georgia branch customers will become members of Palmetto Citizens, the release stated.

Burke Stelling Group served as financial advisor, and Nelson Mullins Riley & Scarborough LLP served as legal counsel to Southern Bank. Mercer Capital served as financial advisor, and Hongiman, LLP served as legal counsel to Palmetto Citizens.