Piedmont Financial Holding in Winston-Salem, N.C., has agreed to buy Wake Forest Bancshares in Wake Forest, N.C.
The parent of the $1.2 billion-asset Piedmont Federal Savings Bank said in a press release that it will pay $36.8 million for the parent of the $118 million-asset Wake Forest Federal Savings and Loan Association.
The transaction is expected to close during the fourth quarter.
Piedmont will cash out Wake Forest Federal’s minority shareholders. Wake Forest Bancorp MHC will be canceled concurrently with the transaction. Wake Forest Federal’s branch will operate as a division of Piedmont Federal “for the foreseeable future.”
Wake Forest Federal members will receive mutual rights in Piedmont Federal, which is 100% mutually owned by its members. Piedmont Federal will establish a $500,000 foundation to benefit the Wake Forest community.
The deal “brings together two like-minded, historic banking institutions into a stronger franchise that will benefit all of our clients and communities,” David P. Barksdale, Piedmont Federal’s president and CEO, said in the release. “This is the first step in a broader strategy to extend our member banking experience to the greater Triangle market.”
Renee Shaw, Wake Forest Federal’s president and CEO, and all other current employees are expected to remain with the combined bank after the deal closes. One Wake Forest Federal director will join Piedmont Federal’s board.
Performance Trust Capital Partners and Luse Gorman advised Piedmont Federal. Wake Forest Federal was advised by Keefe, Bruyette & Woods and Kilpatrick Townsend & Stockton.