DeVan Ard and his team at Reliant Bancorp have agreed to pay about $123 million in stock and cash for the second-largest lender in Montgomery County, a deal that will grow Reliant to about $3 billion in assets and give it a 30-office footprint from Clarksville to Columbia.
Brentwood-based Reliant plans to complete the acquisition of First Advantage Bancorp in the second quarter of next year. Clarksville-based First Advantage runs five offices in Montgomery County as well as one in downtown’s Capitol View development and two in Franklin. Through the first six months of this year, the bank produced a profit of nearly $3.4 million — down slightly from the same period in 2018 — and grew its assets to $693 million from $602 million a year earlier.
Word of the First Advantage deal comes about five weeks after President and CEO Ard and his team said they had agreed to pay about $37 million for the parent of Community Bank & Trust in Cheatham County. (Reliant also completed the purchase of Community First Bank & Trust in Maury County at the beginning of last year.) Reliant executives said Wednesday morning that adding Community Bank & Trust and First Advantage is expected to grow their earnings per share by about 18 percent in 2021.
“Our companies share similar values, and our partnership will reinforce the foundation for an extraordinary financial services company,” Ard said in a statement. “This transaction satisfies our strategic and financial criteria for a successful acquisition. We are gaining a strong presence in the attractive Clarksville MSA, anticipate double-digit EPS accretion, and expect to benefit from the strong growth and fantastic asset quality trends that First Advantage Bank has demonstrated.”
First Advantage board members William Lawson Mabry and Michael Wallace are slated to join the Reliant board when the deal is completed next year.
“The partnership with Reliant Bank is an excellent fit for our shareholders, customers, and employees,” said First Advantage CEO Earl Bradley III. “The combination of our companies will better align our resources, enhance our financial strength, and expand our product offerings and technology solutions, all while allowing us to remain actively involved in our communities.”