Piedmont Financial Holding Company entered into an agreement to acquire a 40.7% stake in Wake Forest Bancshares, Inc. (OTCPK:WAKE) for $14.9 million on June 27, 2023. Per the terms of the transaction, minority shareholders of Wake Forest Bancshares will receive $34.34 in cash for each publicly owned share. Based on 435,296 publicly held shares, the aggregate cash payment equals approximately $14.95 million. The transaction has an implied aggregate deal value of $36.75 million based on a total of 1,070,296 shares outstanding, which includes 635,000 shares of Wake Forest Bancshares owned by Wake Forest Bancorp, M.H.C that will be cancelled concurrently with the transaction. Wake Forest Federal Savings and Loan Association will be merged into Piedmont Federal, while Wake Forest Bancshares and Wake Forest Bancorp, M.H.C. will each be merged into Piedmont Financial Holding Company. Wake Forest Federal?s branch office will continue to operate as ?Wake Forest Federal, a division of Piedmont Federal,? for the foreseeable future. All current employees of Wake Forest Federal are expected to remain with the combined company after the transaction closes. One director from Wake Forest Federal will join Piedmont Federal?s board and the remaining directors will be invited to join a local advisory board. As of November 19, 2023, the transaction is currently expected to close early in the first quarter of 2024.

The transaction is expected to close during the fourth quarter of 2023, subject to regulatory and Wake Forest Federal shareholder approval and the satisfaction of the closing conditions to the merger. As of October 13, 2023, The U.S. Office of the Comptroller of the Currency approved the transaction. As of December 15, 2023, the shareholders of Wake Forest Bancshares approved the transaction. Subject to the satisfaction of customary closing conditions, the transaction is expected to close on January 2, 2024. Performance Trust Capital Partners and Luse Gorman, PC served as exclusive financial advisor and legal counsel to Piedmont Federal, respectively. Wake Forest Federal was advised by financial advisor Robin Suskind of Keefe, Bruyette & Woods, Inc., a Stifel Company, and legal counsel Kilpatrick Townsend & Stockton LLP.

Piedmont Financial Holding Company completed the acquisition of a 40.7% stake in Wake Forest Bancshares, Inc. (OTCPK:WAKE) on January 3, 2024. Renee Shaw, President and CEO of Wake Forest Federal Savings and Loan Association, has joined Piedmont Federal Savings Bank's board, and the remaining directors of Wake Forest Federal have been invited to join a local advisory board.