Park National has signed a definitive agreement and plan of merger and reorganisation to acquire CAB Financial for nearly $141.8m.
Under the terms of the agreement, Park will issue around 1.03 million shares and $28.4m in cash as consideration.
As a part of this cash-and-stock transaction, CAB’s banking subsidiary Carolina Alliance Bank will merge into Park’s banking unit The Park National Bank.
The CAB Financial acquisition is expected to close in the first half of next year, subject to customary closing conditions including regulatory approvals.
Once completed, Carolina Alliance Bank will operate as a division of The Park National Bank along with its current leadership.
Carolina Alliance Bank CEO John Kimberly said: “We chose to partner with Park National Bank because its leadership and service values align very closely with ours.
“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 nearly $730m in assets as of 30 June 2018, Carolina Alliance Bank has seven banking offices in South Carolina and North Carolina. It also runs a loan production office in Charlotte, North Carolina.
Commenting on CAB Financial acquisition, Park CEO David Trautman said: “We believe in community banking excellence, and Carolina Alliance bankers share those principles and practices.
“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.”
Overall, the Park National community banking family comprises 11 banking divisions as well as a non-bank subsidiary and two specialty finance companies.
Headquartered in Ohio, the company had around $7.5bn in total assets as of 30 June 2018.