Community First Bancorporation (OTCPK:CFOK) signed a definitive agreement to acquire SFB Bancorp, Inc. (OTCPK:SFBK) for approximately $8.3 million on October 9, 2020. As per the terms, SFB's shareholders will receive $33 for each share of common stock held by them. Upon completion of the merger, Community First will establish an East Tennessee Advisory Board composed of the non-employee members of the board of directors of SFB who choose to serve on such Advisory Board. SFB Bancorp's subsidiary Security Federal's employees will join Community First associates. The transaction is subject to approvals from federal and state bank regulatory agencies and SFB's shareholders. The transaction is unanimously approved by the Board of Directors of each company. The transaction is expected to close in the first quarter of 2021. The merger is expected to be immediately accretive to Community First's earnings per share, excluding transaction costs. Community First was advised by Chuck Stubbs of D.A. Davidson & Co. as financial advisor and Brooks, Pierce, McLendon, Humphrey & Leonard, LLP, as legal counsel. Janney Montgomery Scott LLC served as SFB's financial advisor and Jones Walker LLP, served as SFB's legal counsel.

Community First Bancorporation (OTCPK:CFOK) completed the acquisition of SFB Bancorp, Inc. (OTCPK:SFBK) on March 1, 2021. SFB was merged with and into Community First immediately followed by the merger of Security Federal Bank with and into Community First Bank. The combined bank will conduct business as “Community First Bank” after completing the systems integration scheduled for July 2021.