Carolina Financial in Charleston, S.C., has agreed to buy Congaree Bancshares in Cayce, S.C.

The $1.3 billion-asset Carolina Financial said in a press release Wednesday that it will pay $16.3 million, or $8.10 a share, in cash and stock for the $117 million-asset parent of Congaree State Bank. The deal, which is expected to close in the second quarter, values Congaree at 119% of its tangible book value.

Carolina Financial said it expects the transaction to be immediately accretive to its earnings per share with tangible book value dilution recovered in less than three years. Carolina Financial said it should incur $1.6 million in merger-related expenses; the company also plans to reduce Congaree's costs by 37.5% without closing any branches.

"We are excited to expand our franchise into the Columbia market and to partner with such a quality community bank," Jerry Rexroad, Carolina Financial's chief executive, said in the release. "With our strong capital base and historical success in partnership growth, we are well-positioned to capitalize on this strategic partnership."

Nelson Mullins Riley & Scarborough advised Carolina Financial. Banks Street Partners and Smith Moore Leatherwood advised Congaree.

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