Spartanburg-based Carolina Alliance Bank’s plan to form a holding company has reached fruition.
The community bank announced on Monday, Oct. 23, the Federal Reserve Bank of Richmond approved its proposal to reorganize under the new company CAB Financial Corp.
Carolina Alliance shareholders approved the plan in May at the bank’s annual meeting.
The bank said it will continue to operate as Carolina Alliance Bank under its current board of directors and executive officers. It will also “engage in the same business in which it presently is engaged,” and continue to operate out of its current locations.
As of Monday, CAB Financial Corp.’s shares were listed on the OTCQX Market under the “CABF” symbol.
The bank said shares of its common stock will be exchanged for shares of the corporation’s common stock at a “one-for-one exchange rate.”
Investors who own the bank’s shares in certificate or book entry form will receive information in the mail about any steps necessary to complete the exchange of shares, Carolina Alliance said.
The bank has seven locations across the Upstate, Western North Carolina, and Charlotte, N.C.
Carolina Alliance announced its plan to form the holding company in January. The proposal included changes in the bank’s leadership.
John Poole, the bank’s CEO and founder, has transitioned to CAB Financial Corp.’s CEO and senior advisor to the bank’s board.
John Kimberly, who became president of the bank after its merger with Forest Commercial Bank in 2014, will continue as president and CEO of Carolina Alliance.
Lamar Simpson will serve as the holding company’s chief financial officer and chief operations officer.
Poole, a veteran community banker, left his position as president and CEO of the Spartanburg Chamber of Commerce to partner with the late Robert Harley and Marsha Gibbs to start Carolina Alliance.
The bank began its initial public stock offering in September 2006 and received its state charter in January 2007.
In 2015, the bank merged with PBSC Financial Corp., the parent company of Pinnacle Bank of South Carolina
For the past decade, the bank has operated without a holding company.
In January, a bank official said the new corporate structure would provide more financial and operational flexibility for the bank, and was important to the bank’s future growth.