Parkway Acquisition in Floyd, Va., has agreed to buy Great State Bank in Wilkesboro, N.C.
The $548 million-asset Parkway said in a press release late Thursday that it will pay $14.5 million in stock for the $139 million-asset Great State. The deal is expected to close in the third quarter.
The acquisition is expected to be immediately accretive to Parkway's earnings, excluding merger-related expenses. It should take about three years to earn back any dilution to Parkway’s tangible book value.
"This combination will expand our presence into several additional North Carolina counties and further our goal of being the leading community bank in our region,” Allan Funk, Parkway’s president and CEO, said in the release. Parkway is the parent of Skyline National Bank.
Greg Edwards, Great State’s CEO, will become regional president for North Carolina at Parkway. Two members of Great State’s board will become Parkway directors, while Ron Pearson, Great State’s chief credit officer, will stay as a senior credit officer.
“This transaction is a partnership of two organizations that share a similar culture of service and community and represents a natural extension of Skyline into the adjacent markets of Wilkes, Watauga and Yadkin counties in North Carolina,” Funk added.
Great State is the latest in a long list of North Carolina banks that have been sold to out-of-state buyers. The state has lost about 40% of its banks since late 2010.
Raymond James and Williams Mullen advised Parkway. Performance Trust Capital Partners and Ward and Smith advised Great State.