The deal is expected to close by the second quarter of next year.
Coastal shareholders can receive either $10 in cash or 0.2222 shares of PB Financial, Providence Bank’s parent, in exchange for each share of Coastal stock they own. The combined bank will operate using the Providence name and be headquartered in Rocky Mount.
“This merger unites two community banks that have a shared vision for person service, where customers and bankers know each other,” says PB Financial CEO Ted Whitehurst in a press release.
Whitehurst will continue as CEO of PB Financial and Providence. Richard Jefferson, the CEO of Coastal, will remain in a senior-level position once the deal is completed.
A member of the Coast Bank & Trust board of directors will join the PB Financial board, and the remaining local Coastal board members will create an advisory board.
Once combined, PB Financial will have offices in Holly Ridge, Jacksonville, Morehead City, Nashville, Raleigh, Richlands, Tarboro and Wilson and two in Rocky Mount. It will also have a loan production office in New Bern.
As of June 30, the banks had a combined $1.1 billion in assets, $893 million in deposits and $874 million in loans. Providence opened in 2006, while Coastal started in 2009.