Spartanburg-based CAB Financial Corp., the holding company for Carolina Alliance Bank, has signed an agreement to merge with Newark, Ohio-based Park National Corp., the holding company for Park National Bank.
Park National Corp. expects to acquire CAB Financial Corp. for approximately $141.8 million in a stock and cash transaction, including $28.4 million and 1.03 million shares with an implied share price of $19 each, according to a news release.
The transaction, which is subject to regulatory approvals, is expected to close in the first half of 2019, according to the release.
Following the completion of the merger, Carolina Alliance Bank will operate as a community bank division of Park National Bank.
Carolina Alliance Bank has $730 million in assets and operates seven branches in the Upstate and western North Carolina, with a loan production office in Charlotte, North Carolina.
The bank’s leadership team, including CEO John Kimberly, and its board of directors will continue to operate under the Carolina Alliance Bank name and retain headquarters in Spartanburg, according to the release.
Among the many benefits of the merger, Carolina Alliance Bank will gain greater lending capacity through its partnership with Park, an increasingly important component of its service to commercial and small-business customers, the release said.
The bank will also gain the potential to broaden its offerings to include other financial services not currently available to its customers, the release said.
“We chose to partner with Park National Bank because its leadership and service values align very closely with ours,” Kimberly said in a statement. “Our customers can feel confident that this merger only strengthens our ability to grow with them and continue to do business in the way they have come to expect from Carolina Alliance Bank.”
With the addition of Carolina Alliance Bank, the Park National family of community banks consists of 12 banking divisions, each led by local professionals.
The bank most recently acquired Charlotte-based NewDominion Bank. It also opened a lending office in Louisville, Kentucky, earlier this year.
“We believe in community banking excellence, and Carolina Alliance bankers share those principles and practices,” Park National Corp. CEO David L. Trautman said in a statement. “We are committed to helping John Kimberly and his colleagues in Asheville, Greenville, Spartanburg and surrounding areas as they move forward in this next chapter of their bank’s story.”
Sandler O’Neill & Partners LP is serving as financial adviser and Squire Patton Boggs is serving as legal adviser to Park National during the acquisition of CAB, the release said. FIG Partners LLC is serving as financial adviser and Nelson Mullins Riley & Scarborough LLP is serving as legal adviser to CAB.