PB Financial Corporation Completes Merger with Coastal Bank & Trust

The merger, announced on August 30, 2023, was consummated on April 9, 2024.

ROCKY MOUNT, NC AND JACKSONVILLE, NC / ACCESSWIRE / April 10, 2024 / PB Financial Corporation (OTCQX:PBNC) - ("PB Financial"), the holding company for Providence Bank ("Providence"), and Coastal Bank & Trust ("Coastal") completed the merger transaction previously announced on August 30, 2023. Coastal merged into Providence, creating a community bank with approximately $1.2 billion in assets. Based on financial information as of December 31, 2023, the combined company has total loans of $996.6 million and total deposits of $1.0 billion.

Under the terms of the agreement, 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 that is exchanged in the merger. A limit of 75% of the Coastal common shares may be exchanged for stock, and the remaining 25% of Coastal common shares may be exchanged for cash. Cash will be paid in lieu of fractional shares. Election forms will be mailed to the Coastal shareholders of record as of the closing, detailing the available elections, subject to proration of such elections necessary to meet the aggregate stock/cash mix. The transaction, which received all necessary regulatory and shareholder approvals, is valued at approximately $25.8 million.

With the completion of the merger, Providence, headquartered in Rocky Mount, North Carolina, now operates ten full-service offices and one loan production office serving eastern North Carolina from Raleigh to the Coast. Offices in Jacksonville, Holly Ridge, Morehead City, Richlands, and a loan production office in New Bern will operate under the Coastal name until the close of business on Friday, May 17, 2024, at which time a systems conversion will take place. The Coastal offices outlined above will operate under the Providence Bank name beginning Monday, May 20, 2024.

PB Financial Corporation and Providence Bank President & CEO Ted E. Whitehurst said, "Our experienced team, which now includes the Coastal bankers, know our communities, and they know banking. We are excited to grow our team and footprint, enabling us to serve more individuals and businesses in North Carolina. We believe shareholders from both companies will see the benefit of the merger as it is forecasted to be immediately accretive to earnings."