Charleston-based CresCom Bank is picking up four branches in the Upstate through a merger deal valued at about $45.1 million.
Carolina Financial Corp., parent company of CresCom Bank, signed a definitive merger agreement to acquire Greer Bancshares Inc. and its subsidiary Greer State Bank, according to a filing with the U.S. Securities and Exchange Commission.
Greer Bancshares operates four branches in the Upstate and had $381 million in assets as of Sept. 30. Its gross loans totaled $211 million and deposits reached nearly $300 million, the filing said.
“The Upstate S.C. market continues to be a growing and dynamic market, and we are excited to expand our current franchise further into the Upstate,” Carolina Financial Corp. CEO Jerry Rexroad said in the filing.
Greer Bancshares shareholders will receive $18 per share of common stock, payable in cash or paid in shares of Carolina Financial Corp. common stock, based on a fixed exchange ratio of 0.782. The agreement states that 90% will be paid in newly issued Carolina Financial stock and 10% will be paid in cash, equating to an aggregate deal value of $45.1 million, the filing said.
Both companies’ boards of directors unanimously approved the merger, which is expected to close in the first quarter of 2017, the filing said. Other regulatory approvals are still needed.
“Our companies share very similar philosophies, cultures and core values,” Greer Bancshares Inc. CEO and President Rick Medlock said in the filing. “We believe that the strength and resources provided by Carolina Financial Corp. will enable us to expand the products and services available to our customers.”
Once the merger is complete, Carolina Financial Corp. is expected to have about $2 billion in assets, $1.6 billion in loans and $1.5 billion in deposits, according to the filing.
Earlier this year, Carolina Financial Corp. completed a merger with Cayce-based Congaree State Bank and its parent company. That cash-and-stock deal was valued at $16.3 million.