Community Bank of Rowan, Piedmont close deal
SALISBURY — Community Bank of Rowan announced Wednesday the completion of its transaction with Piedmont Community Bank Holdings Inc., based in Raleigh.
“Joining Piedmont will give Community Bank of Rowan access to substantial additional capital,” Bruce Jones, chief executive officer of Community Bank of Rowan, said in a press release.
“This will allow our bank to continue to grow and support customers in Rowan County.”
Piedmont paid cash to purchase 100 percent of the shares of Community Bank of Rowan, which has banking offices in Salisbury and China Grove. The nine-member local board of directors and bank management remain in place, as do the bank’s 23 employees.
Scott Custer, president and chief executive officer of Piedmont Community Bank Holdings, said, “The additional capital from Piedmont will help Community Bank of Rowan build on its success in Rowan County. We are excited to be working with the Community Bank of Rowan’s team.”
The share exchange agreement had been announced previously in mid November 2010. The proposed purchase deal was judged then at approximately $10 million.
Capitol Bancorp Limited of Lansing, Mich., owned 51 percent of Community Bank of Rowan, with the remaining 49 percent being held predominantly by local investors. With Wednesday’s transaction, Community Bank of Rowan becomes a wholly owned subsidiary of Piedmont.
Community Bank of Rowan opened its first office in China Grove in February 2006. The Salisbury main office opened in May 2006 in the former home of the National Sportscasters and Sportswriters Hall of Fame, at North Long and East Innes streets.
As of Dec. 31, 2010, Community Bank of Rowan had $140.3 million in assets and $126.4 million in deposits.
Piedmont Community Bank Holdings is a federally chartered bank holding company formed in 2009 by Custer and Adam Abram, who want to build a banking franchise across the Carolinas and Virginia. Abram serves as chairman of the board. Steven Lerner is vice chairman.
Investors in Piedmont include investment funds managed by Stone Point Capital LLC, Lightyear Capital LLC, the State of Wisconsin Investment Board, Harvard Management Co., Keeneland Capital LLC and numerous N.C.-based companies and individuals.
In February 2010, Piedmont bought approximately 62 percent of the outstanding equity in VantageSouth Bank, a community bank in Burlington. It also has announced the acquisition of a majority stake in Crescent State Bank in Cary, pending federal approval.