COMMUNITY FIRST ANNOUNCES AGREEMENT TO SELL SEATRUST MORTGAGE COMPANY

Rhea-AI Summary

Community First Bancorporation (OTC: CFOK) has agreed to sell its subsidiary SeaTrust Mortgage Company to Primis Bank in a cash transaction. The sale, which received unanimous board approval, is expected to close by May 31, 2022, pending customary closing conditions. SeaTrust, operational since February 2020, has locations in North Carolina and Florida, and its sale allows Community First to focus on expanding its core lending services following the acquisition of Security Federal Bank in 2021. President Richard D. Burleson described the sale as bittersweet but strategically beneficial.

Positive

• Cash transaction for 100% of SeaTrust stock expected to strengthen financial position.
• Sale allows Community First to refocus on core commercial and retail lending after acquiring Security Federal Bank.

Negative

• None.

SENECA, S.C., April 28, 2022 /PRNewswire/ -- Community First Bancorporation ("Community First") (OTC: CFOK) the parent company of Community First Bank Inc. ("Bank") and the Bank's subsidiary SeaTrust Mortgage Company ("SeaTrust") announced today an agreement for the sale of SeaTrust to Primis Bank, Glen Allen, Virginia ("Primis").

COMMUNITY FIRST BANK ANNOUNCES AGREEMENT TO SELL SEATRUST MORTGAGE COMPANY

Primis will purchase 100% of the SeaTrust stock in a cash transaction. The transaction has been unanimously approved by the Board of Directors of each company and is expected to close May 31, 2022, subject to the satisfaction or waiver of customary closing conditions.

SeaTrust opened for business in February 2020, is headquartered in Wilmington, North Carolina, and has offices in Wilmington, Charlotte, Greensboro, and Jacksonville, North Carolina, Fort Lauderdale, Tampa, and Jacksonville, Florida, and Franklin and Nashville, Tennessee.

Richard D. Burleson, President and CEO of Community First, stated: "The sale of SeaTrust is bittersweet. We built a great team of mortgage lenders and a sophisticated technology platform for mortgage originations. However, with our acquisition in 2021 of Security Federal Bank, in Elizabethton, Tennessee we have been able to expand our inhouse mortgage products and now find a reduced need for a mortgage subsidiary. This sale will allow the Bank to focus its resources on expanding its commercial, retail and small business lending offerings in the communities we serve."

Community First Bank Inc., a South Carolina chartered community bank, operates eight banking offices in the South Carolina communities of Seneca, Walhalla, Anderson, Williamston, Westminster, and Greenville, two banking offices in North Carolina in Charlotte and Dallas, two banking offices in Elizabethton, Tennessee and two loan production offices in Waynesville, North Carolina and Kingsport, Tennessee.

CONTACT: Richard D. Burleson
President and Chief Executive Officer
Community First Bancorporation
Office: 864-886-0206
www.c1stbank.com

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SOURCE Community First Bank

FAQ

What is the recent sale agreement by Community First Bancorporation (CFOK)?

Community First Bancorporation has agreed to sell its subsidiary SeaTrust Mortgage Company to Primis Bank in a cash transaction.

When is the expected closing date for the SeaTrust sale?

The sale is expected to close by May 31, 2022.

What strategic changes are expected after the sale of SeaTrust for CFOK?

Community First plans to focus on expanding its commercial, retail, and small business lending offerings.

Who approved the sale of SeaTrust Mortgage Company?

The sale was unanimously approved by the Board of Directors of both Community First and Primis Bank.