Carolina Alliance Bank and Forest Commercial Bank Announce Completion of Merger
April 07 2014 - 8:00AM
Business Wire
Carolina Alliance Bank (“CAB”) (OTCBB:CRLN and OTCQB:CRLN) and
Forest Commercial Bank (“FCB”) jointly announced today that the
previously announced merger of the two banks was completed on April
5, 2014 after receiving all shareholder and regulatory approvals.
Today the Forest Commercial offices in Asheville and Hendersonville
and its loan production office in Charlotte opened as offices of
Carolina Alliance Bank.
Upon completion of the merger, FCB shareholders received 0.755
newly issued shares of CAB in exchange for each outstanding FCB
share and own approximately 40% of the Bank. The Bank’s total
assets now stand at approximately $400 million.
“Both Carolina Alliance and Forest Commercial remain committed
to delivering the same exceptional customer service to the
communities in which we operate,” said John Poole, Chief Executive
Officer of CAB. “As we grow, we continue to stay true to our
philosophy of serving our markets through local bankers making
local decisions.” John Kimberly, CAB President and former President
and Chief Executive Officer of FCB, noted “The advantages of our
combined financial institution include a significantly higher
lending limit, expanded product offerings, and the ability to
generate efficiencies, which we believe in turn will increase
profitability.” Mr. Kimberly added, “With our expanding footprint
and the many benefits to be recognized in this merger, we believe
that our bank is well positioned for future success.”
CAB began operations in January 2007 and is headquartered in
Spartanburg, South Carolina. FCB was founded in March 2008 and has
been headquartered in Asheville, North Carolina. In addition to its
Spartanburg main office, CAB recently established a branch office
in Seneca, South Carolina and expects to open a branch office in
Anderson, South Carolina later this month. Through the former
Forest Commercial offices, the combined bank now serves western
North Carolina from offices in Asheville and Hendersonville and a
loan production office in Charlotte. Certain executive and
operating functions also are maintained in the Asheville office.
More information about CAB can be found on its website at
www.carolinaalliancebank.com.
Carolina Alliance was advised in the transaction by FIG
Partners, LLC as financial advisor and Nelson Mullins Riley &
Scarborough LLP as legal counsel. Forest Commercial was advised by
Banks Street Partners, LLC as financial advisor and Wyrick Robbins
Yates & Ponton LLP as legal counsel.
Note
Certain statements in this news release contain “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, such as statements relating to future plans and
expectations, and are thus prospective. Such forward-looking
statements are subject to risks, uncertainties, and other factors,
such as the businesses of Carolina Alliance Bank and Forest
Commercial Bank may not be integrated successfully or such
integration may take longer to accomplish than expected, the
expected cost savings and any revenue synergies from the merger may
not be fully realized within the expected timeframes, disruption
from the merger may make it more difficult to maintain
relationships with clients, associates, or suppliers, a continued
downturn in the economy, competitive pressures among depository and
other financial institutions, the rate of delinquencies and amounts
of charge-offs, the level of allowance for loan loss, the rates of
loan growth, or adverse changes in asset quality in our loan
portfolio, and changes in the U.S. legal and regulatory framework,
including the effect of recent financial reform legislation on the
banking industry, any of which could cause actual results to differ
materially from future results expressed or implied by such
forward-looking statements.
Although we believe that the assumptions underlying the
forward-looking statements are reasonable, any of the assumptions
could prove to be inaccurate. Therefore, we can give no assurance
that the results contemplated in the forward-looking statements
will be realized. The inclusion of this forward-looking information
should not be construed as a representation by us or any person
that the future events, plans, or expectations contemplated by us
will be achieved. All subsequent written and oral forward-looking
statements concerning us or any person acting on our behalf is
expressly qualified in its entirety by the cautionary statements
above. We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise, to reflect circumstances or events
that occur after the date the forward-looking statements are
made.
Carolina Alliance BankJohn S. Poole, 864-542-2615orForest
Commercial BankJohn D. Kimberly, 828-255-5711