Carter Bank Announces North Carolina Branch Acquisition From First Reliance Bank
Rhea-AI Summary
Carter Bank (NASDAQ:CARE) has announced a strategic acquisition of two North Carolina branches from First Reliance Bank. The transaction involves Carter Bank acquiring deposits and assets from First Reliance's branches in Mooresville and Winston-Salem, including the Winston-Salem facility. Carter Bank will pay a 4.6% deposit premium on the average closing balance of transaction accounts but will not acquire any loans.
Following the transaction's completion, expected in the first half of 2025, Carter Bank will operate 66 locations across Virginia and North Carolina. The Mooresville deposits will be transferred to Carter Bank's existing branch. This move strengthens Carter Bank's presence in North Carolina, particularly between Greensboro and Charlotte, while allowing First Reliance to focus on its core South Carolina markets.
Positive
- Expansion of market presence in North Carolina with two additional branches
- Expected improvement in profitability and shareholder returns
- Strategic consolidation in Winston-Salem market
- No loan portfolio acquisition, reducing risk exposure
Negative
- 4.6% premium payment required on deposit accounts
Insights
This branch acquisition represents a strategic expansion for Carter Bank in North Carolina's key markets. The
The transaction will immediately boost Carter Bank's deposit base and market presence in the attractive Winston-Salem and Charlotte corridors. For a bank with a
This deal aligns with broader banking industry trends of strategic market consolidation and branch network optimization. The Winston-Salem-Charlotte corridor represents a high-growth market with strong demographic trends and business activity. First Reliance's exit from North Carolina to focus on South Carolina demonstrates the increasing importance of market density and operational efficiency in regional banking.
The transaction strengthens Carter Bank's competitive position by expanding its footprint to 66 branches. The focus on deposit acquisition without loans indicates a strategic emphasis on gathering stable funding sources in attractive markets. The retention of branch staff should help maintain existing customer relationships and minimize transition risks.
MARTINSVILLE, VA and FLORENCE, SC / ACCESSWIRE / December 10, 2024 / Carter Bankshares, Inc. (NASDAQ:CARE) and First Reliance Bancshares, Inc. (OTC PINK:FSRL), announced today that their wholly owned subsidiaries, Carter Bank and First Reliance Bank, entered into a definitive Purchase and Assumption Agreement (the "Agreement") under which Carter Bank will acquire deposits associated with First Reliance Bank's two branches in Mooresville and Winston-Salem, as well as First Reliance Bank's Winston-Salem branch facility (the "Transaction").
The Transaction allows First Reliance Bank to focus on its core markets in South Carolina as well as advance the organization's branch efficiency strategy. Of First Reliance Bank's entire branch network, these two locations were the only two locations situated outside of South Carolina. For Carter Bank, the Transaction represents further expansion into Winston-Salem and continued growth in the Charlotte area. Following the closing of the Transaction, Carter Bank will operate 66 locations in its branch network throughout Virginia and North Carolina.
Pursuant to the terms of the Agreement, Carter Bank has agreed to assume certain deposit liabilities, and acquire cash, personal property and other fixed assets associated with the Winston-Salem branch. Additionally, Carter Bank plans on transferring the deposits acquired from the First Reliance Bank branch in Mooresville to its existing Mooresville branch. Carter Bank will pay a
Management Commentary
Litz H. Van Dyke, Chief Executive Officer of Carter Bank, stated, "We are excited to announce a branch purchase agreement with First Reliance Bank that will enhance Carter Bank's overall growth. This transaction strengthens our presence, deepens our commitment to North Carolina, and further expands our network between Greensboro and Charlotte. We see this as a crucial step in optimizing our operations in Winston-Salem, as it gives us an immediate presence in the market, and we are gaining further market share in Mooresville. We believe that the Transaction will improve our profitability and deliver exceptional returns to our shareholders. We are looking forward to welcoming the First Reliance Bank customers and branch associates to Carter Bank."
Rick Saunders, Chief Executive Officer of First Reliance Bank stated, "I am pleased to announce an agreement that I believe will benefit all parties involved. Carter Bank is gaining two teams with strong connections to the communities they serve, which will bring significant value to the organization. By streamlining our focus to our core South Carolina market, I anticipate that our associates and shareholders will benefit from improved efficiencies, and the growth trajectory of First Reliance Bank will be enhanced."
Raymond James & Associates, Inc. acted as financial advisor to Carter Bank, and Troutman Pepper Hamilton Sanders LLP acted as its legal advisor in the Transaction. Hovde Group, LLC acted as financial advisor to First Reliance Bank and Ward and Smith, P.A. acted as its legal advisor in the Transaction.
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Media Contacts:
Carter Bank:
Brooks Taylor
VP, Corporate Communications Officer
Phone: 276-806-5445
Email: brooks.taylor@carterbank.com
First Reliance:
Robert Haile
Chief Financial Officer, Senior Executive Vice President
Phone: 843-674-3251
Email: rhaile@firstreliance.com
About Carter Bankshares, Inc.
Carter Bankshares, Inc. is a bank holding company and the parent company of Carter Bank, a state-chartered community bank headquartered in Martinsville Virginia, with
About First Reliance Bancshares, Inc
Founded in 1999, First Reliance Bancshares, Inc. is a bank holding company and the parent company of First Reliance Bank, a state-chartered bank based in Florence, South Carolina with total assets of
Forward Looking Statements
Certain statements contained herein are "forward looking statements" within the meaning of federal and state securities laws, including Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," "pro forma," or similar expressions, or future or conditional verbs, such as "will," "would," "should," "could," or "may." These forward-looking statements are based on current beliefs and expectations of Carter Bank's management or First Reliance Bank's management, respectively, which each management team believes to be reasonable as of the date of this press release. These forward-looking statements are inherently subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of Carter Bank or First Reliance Bank. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from those set forth in or implied by the forward-looking statements as a result of numerous factors, and depend on the Carter Bank's and First Reliance Bank's ability to close the Transaction in a timely manner and to realize the anticipated benefits of the Transaction. For a discussion of factors that may impact forward-looking statements by Carter Bank, please see the most recent reports on Forms 10-K and 10-Q filed by Carter Bankshares, Inc. with the Securities and Exchange Commission and available on the SEC's website at www.sec.gov.
The Transaction is subject to regulatory approval and other conditions. The actual amount of deposits that are acquired under Agreement is subject to change prior to closing. Targeted financial benefits are subject to significant uncertainty, and Carter Bank's expected benefits of the Transaction may be affected or offset by other conditions related to Carter Bank's operation. You should not place undue reliance on forward-looking statements, which reflect expectations only as of the date of this release. Neither Carter Bank nor First Reliance Bank undertake any obligation to update any forward-looking statement, except as otherwise required by law.
SOURCE: Carter Bankshares, Inc.
View the original press release on accesswire.com
FAQ
What is the deposit premium Carter Bank (CARE) will pay in the First Reliance branch acquisition?
When is the Carter Bank (CARE) branch acquisition expected to close?
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Which First Reliance branches is Carter Bank (CARE) acquiring?
