Piedmont Financial Holding, which owns Winston-Salem’s Piedmont Federal Savings Bank, completed its $15 million purchase of Wake Forest Bancshares.
The deal adds about $120 million in assets to Piedmont Federal, which has $1.1 billion in assets and 10 branches in the Triad, Boone and Wilkesboro. It has loan production offices in Huntersville and Greensboro, reflecting a push into commercial lending.
Wake Forest shareholders received $34.34 per share. Piedmont Federal, which was formed in 1903, is among the few remaining depositor-owned banks in North Carolina. It set up a mutual holding company in 2022 to provide what it called more flexibility for “growth, capital and new lines of business” but said it was committed to mutual ownership.
When the deal was announced in June, Piedmont Federal CEO David Barksdale said, “This is the first step in a broader strategy to extend our member banking experience to the greater Triangle market.”
As part of the deal, Piedmont Federal set up a $500,000 community foundation to aid Wake Forest, a fast-growing suburb just north of Raleigh.
While Piedmont is about 10 times larger, Wake Forest Federal Savings & Loan has operated more profitably. It reported net income of $1.39 million in its 2022 fiscal year, compared with Piedmont’s net income of $2.1 million.
Wake Forest CEO Renee Shaw is joining the Piedmont Federal board.
Performance Trust Capital Partners was Piedmont Federal’s financial advisor, while the Washington, D.C-based Luse Gorman law firm served as legal counsel. respectively. Wake Forest Federal was advised by financial advisor Keefe, Bruyette & Woods and legal counsel Kilpatrick Townsend & Stockton.
