PB Financial Corporation (OTCPK:PBNC) entered into a definitive strategic agreement to acquire Coastal Bank & Trust (OTCPK:CABT) for a transaction valued at $25.8 million on August 30, 2023. As part of consideration, Coastal shareholders may elect to receive either $10.00 in cash or 0.2222 shares of PB Financial common stock for each share of Coastal common stock. In the 75% stock and 25% cash transaction, Coastal will merge into Providence. The combined bank will operate under the Providence name, be headquartered in Rocky Mount, North Carolina, and include ten full-service offices serving North Carolina communities from the capital to the coast: Holly Ridge, Jacksonville, Morehead City, Nashville, Raleigh, Richlands, Rocky Mount (2 locations), Tarboro and Wilson, with a loan production office in New Bern. Ted E. Whitehurst will continue to serve as president and chief executive officer of Providence, as well as president and chief executive officer of PB Financial Corporation. Richard G. Jefferson will remain in a senior-level position with the combined Bank. A member of the Coastal Bank & Trust Board of Directors will join the PB Financial Board of Directors, and the remaining local Coastal board members will serve on a newly-formed Coastal Advisory Board of Providence Bank.

The merger agreement was unanimously approved by the Boards of Directors for both companies. The transaction is subject to required shareholder and regulatory approvals, and other customary closing conditions. The transaction is expected to be completed in the second quarter of 2024.

John Schramm and Jerad Comarda of Janney Montgomery Scott LLC acted as financial advisor and Wyrick Robbins Yates & Ponton LLP acted as legal advisor to PB Financial. The Burke Group acted as financial advisor and Ward and Smith acted as legal advisor to Coastal. The Burke Group, LLC acted as Fairness Opinion to Coastal Bank & Trust.

PB Financial Corporation (OTCPK:PBNC) completed the acquisition of Coastal Bank & Trust (OTCPK:CABT) on April 9, 2024.