Heritage Financial Group, Inc. the holding company for HeritageBank of the South ("HeritageBank"), today announced that it has signed a definitive agreement to purchase a branch in Norcross, Georgia, from The PrivateBank, a wholly owned subsidiary of Chicago-based PrivateBancorp, Inc. The branch is located at 3169 Holcomb Bridge Road, which is in the northeast area of metro Atlanta, approximately four miles north of the perimeter (I-285). This location provides ease of access throughout metro Atlanta and is home to a significant population of small- and medium-sized businesses, which fits well into Heritage's operating model.

The transaction, which is expected to close in the fourth quarter of 2014, subject to regulatory approval and other customary conditions, is expected to result in the transfer of approximately $40 million in fully performing loans, at 99% of the outstanding balance at closing, and approximately $129 million in deposits, with a deposit premium of 3.8%. In addition to purchasing the branch, HeritageBank also expects to retain the employees currently working in that location. 

Commenting on the announcement, Leonard Dorminey, President and Chief Executive Officer of Heritage Financial Group, Inc., said, "This branch acquisition, when completed, will allow us to pursue a niche-focused commercial bank model and will provide the footing for possible future expansion in metro Atlanta. For several years, we have enjoyed a growing business in the Atlanta area, serviced from our mortgage banking locations around the city, so we understand the banking environment in Atlanta and know the opportunities it holds for community banks like HeritageBank. We are excited by the prospects of having a physical branch in metro Atlanta, which we believe will increase our visibility in the market and enhance our ability to recruit high-performing commercial bankers and better serve our customers."

An investor presentation outlining key information about the transaction is available online under the "Investors" tab of the Company's website, www.eheritagebank.com.