Yadkin Valley Financial Corp. in Elkin, N.C., has announced it has a deal to buy Cardinal State Bank in Durham, N.C., for $41.8 million in cash and stock.
The $1.1 billion-asset Yadkin Valley announced the deal after the markets closed Thursday. Cardinal’s shares rose 34% Friday, to $16.95.
The parent of Yadkin Valley Bank and Trust has 24 branches in nine counties, mostly in western North Carolina. The $193 million-asset Cardinal, founded in 2001, has four branches in the Research Triangle of North Carolina.
“Although we believe Yadkin’s existing markets are excellent, the demographics of Durham and Orange counties are even better,” said Yadkin president and chief executive officer Bill Long.
The deal is expected to close in the fourth quarter. The price is 2.03 times Cardinal’s book value.
In March Cardinal was reported in the local press to be looking for a buyer. Cardinal would retain its name, operate as a division of Yadkin Valley. John Mallard, Cardinal’s president and CEO, is to stay on as the regional president.
