Carolina Trust BancShares Inc., parent company of Carolina Trust Bank, and Clover Community Bankshares Inc., parent company of Clover Community Bank, have entered into a $21.5 million merger agreement in which Carolina Trust will acquire Clover and its subsidiary bank.
The merger will create a combined organization with approximately $600 million in assets, $450 million in loans, $500 million in deposits and $65 million in shareholders’ equity. The organization will have 11 full-service banking offices, including two branches in York County and nine in North Carolina.
“We believe this combination will provide great value for our shareholders, will improve profitability significantly and will increase our efficiencies,” said Jerry Ocheltree, president and CEO of Carolina Trust, in a news release. “We expect it will better position our company as a profitably growing community bank in the expanding Charlotte metro region.”
The merger agreement has been unanimously approved by the boards of directors of both companies. Shares of Clover common and preferred stock will be exchanged for either 2.7181 shares of Carolina Trust common stock or $22 in cash. Carolina Trust said it anticipates issuing approximately 2.1 million shares of common stock in the merger.
The acquisition, subject to regulatory approval and approval by the shareholders of both companies, is expected to be completed during the fourth quarter of 2018.
“We are excited to partner with Carolina Trust,” said Gwen Thompson, president and CEO of Clover. “Our customers will continue to receive the same high-quality service and care that has distinguished Clover Community Bank over the years while benefitting from the increased product and technology offerings of a larger institution.”