Superior will merge with People's Bancshares

Won't hurt plans for expansion in area, executive says

Birmingham-based Superior Bancorp said Friday that it has agreed to merge with People's Community Bancshares of Sarasota, Fla., in a stock transaction worth about $77.1 million.

The planned merger won't impact Superior's expansion plans in northeast Alabama and Florida, according to a Superior executive.

"We've got 13 additional offices planned" in Florida and northeast Alabama in 2007 and 2008, said Tom Jung, Superior's executive vice president. Those plans for growth "are not affected by this merger."

Superior Bank, a subsidiary of Superior Bancorp, has 57 branches in Alabama and Florida - stretching from Huntsville to Tampa.

The bank has two locations in Huntsville and one in Madison and is operating an Athens branch in a storefront location until a permanent office is built. Branches are also planned for the Hampton Cove area in front of the new Lowe's at U.S. 431 South and Sutton Road, and in Madison on U.S. 72 near Outback Steakhouse.

The Hampton Cove site is being prepared for construction, Jung said. "We're trying to open there in June."

The merger is designed to strengthen Superior's presence in Florida by combining People's Community Bancshares' subsidiary - People's Community Bank of the West Coast, which has three branches in Sarasota and Manatee counties - with Superior Bank.

"This partnership is consistent with our expansion plans for creating partnerships with community banks who share in our vision of superior service, performance and value for our customers, associates and shareholders," Superior Bancorp Chairman and CEO Stan Bailey said in a news release. Central Florida is Superior's largest market, Bailey said, and has higher projected population growth than any of Superior's current markets.

"The plan is to be at $1 billion in deposits in Florida, and this gets us closer to that goal," Jung said. Besides central Florida, another key market for Superior is the northeast Alabama area, anchored by Huntsville, he said.

The merger, which is expected to occur in the second quarter, must be approved by regulators and by People's shareholders.

Superior Bancorp merged with Community Bancshares late last year.