Spartanburg-based Carolina Alliance Bank and Greenville-based Pinnacle Bank will merge to form an eight-branch full-service community bank across Spartanburg, Greenville, Easley, Powdersville, Anderson and Seneca, S.C. and Asheville and Hendersonville, N.C. The merged companies – operating as Carolina Alliance Bank – will also include loan production offices in Spartanburg, S.C. and Charlotte, N.C.
The merger follows Carolina Alliance’s merger with Asheville-based Forest Commercial Bank last year.
The terms of the Carolina Alliance and Pinnacle deal – expected to close during the fourth quarter of 2015 – were not disclosed. The number of employees affected was not disclosed.
The bank will have approximately $567 million in assets, $461 million in loans and $461 million in deposits, according to a news release.
“Merging these financially sound institutions is a natural fit to bridge our Spartanburg and western upstate offices,” said Carolina Alliance CEO John Poole. “Both banks share a philosophy of service customers with seasoned local bankers and local decision-making. We also serve the local communities in which we operate.”
Pinnacle Bank President and CEO David Barnett – also President and CEO of Pinnacle holding company PBSC Financial Company – will serve as president of the new entity’s Greenville and South Carolina Western Region. Three members of PBSC’s board of directors will join the Carolina Alliance Board of Directors.
Shareholders of PBSC will be able to elect to receive wither $12 per share of cash or 1.0909 shares of Carolina Alliance common stock for each share of PBSC common stock help, with conditions. Based on the closing price of $11.50 for Carolina Alliance common stock on March 23, 2015, the transaction would result in an aggregate value of $23.3 million.
BSC shareholders are expected to own 26 percent of the combined bank, while Carolina Alliance Bank are expected to hold 74 percent.