Piedmont Federal Savings Bank Announces Completion of Acquisition of Wake Forest Bancshares, Inc.

Rhea-AI Summary

Piedmont Financial Holding Company (OTC Pink: PFHD) completes acquisition of Wake Forest Bancshares, Inc. (OTC Pink: WAKE), expanding its client base and community involvement. Minority shareholders received $34.34 per share, with Wake Forest Federal members gaining mutual rights in Piedmont Federal. The merger aims to provide a robust suite of products and customer service capabilities through a relationship-based community banking model.

WINSTON-SALEM, N.C., Jan. 03, 2024 (GLOBE NEWSWIRE) --  Piedmont Financial Holding Company, the parent company of Piedmont Federal Savings Bank (“Piedmont Federal”), has announced the completion of its acquisition of Wake Forest Bancshares, Inc. (OTC Pink: WAKE), the parent company of Wake Forest Federal Savings and Loan Association (“Wake Forest Federal”).

Piedmont Federal was chartered in 1903 and serves clients in markets ranging from the Northwest Piedmont to the Triad and Lake Norman. Its merger with Wake Forest Federal, founded in 1922, has extended its deposit client base to include Wake Forest Federal’s office located in the heart of Wake Forest, NC, which will continue to operate as “Wake Forest Federal, a division of Piedmont Federal,” for the foreseeable future.

Per the terms of the transaction, minority shareholders of Wake Forest Bancshares received $34.34 in cash for each publicly owned share. Wake Forest Federal members will receive mutual rights in Piedmont Federal, which is 100% mutually owned by its members. In addition, Piedmont Federal will establish a $500,000 foundation to benefit the community of Wake Forest. It is believed that this would be the largest privately sourced community foundation in the Wake Forest area. The current members of the Wake Forest Federal Board will initially serve on the Board of Trustees of the foundation, as will one independent member who will be appointed by Piedmont Federal in consultation with Wake Forest Federal.

Renee Shaw, President and CEO of Wake Forest Federal, has joined Piedmont Federal’s board, and the remaining directors of Wake Forest Federal have been invited to join a local advisory board.

David P. Barksdale, President and CEO of Piedmont Federal, commented, “We are pleased to announce the completion of our merger with Wake Forest Bancshares and Wake Forest Federal. The management teams and employees of both Piedmont Federal and Wake Forest Federal have worked diligently to prepare for the integration of our two companies. We look forward to moving forward united with an experienced and respected board, leadership team, and employees highly focused on supporting our customers."

Ms. Shaw noted, “We are excited to join the Piedmont Federal team and work together to benefit all of our customers. The increased scale and resources resulting from this combination will enable us to provide customers with a robust suite of products and customer service capabilities, that will continue to be delivered through a relationship-based community banking model.”

Performance Trust Capital Partners and Luse Gorman, PC served as exclusive financial advisor and legal counsel to Piedmont Federal, respectively. Wake Forest Federal was advised by financial advisor Keefe, Bruyette & Woods, Inc., a Stifel Company, and legal counsel Kilpatrick Townsend & Stockton LLP.

Wake Forest Federal had $121 million in total assets as of September 30, 2023. Piedmont Federal had $1.16 billion as of the same date and 10 branch locations.

About Piedmont Federal Savings Bank

At Piedmont Federal, our Purpose is simple – We Open Doors for You. We open doors for you to purchase a new home and to build savings; we open doors for your business to obtain the financing and banking services it needs; we open door for our communities to be better places to live. Our Values form the foundation of this Purpose: Being Authentic, Building Caring Relationships, Doing What’s Right, Going All In, and Moving Forward. These Values guide how we do business and we believe they are our competitive advantage. We pledge to live these Values in our service to you.

Contacts:

David P. Barksdale, Piedmont Federal Savings Bank
dpbarksdale@piedmontfederal.com
(336) 830-0065

FAQ

What is the ticker symbol for Piedmont Financial Holding Company?

The ticker symbol for Piedmont Financial Holding Company is PFHD.

What was the cash value received by minority shareholders of Wake Forest Bancshares?

Minority shareholders of Wake Forest Bancshares received $34.34 in cash for each publicly owned share.

What were the total assets of Wake Forest Federal as of September 30, 2023?

Wake Forest Federal had $121 million in total assets as of September 30, 2023.

How many branch locations does Piedmont Federal have?

Piedmont Federal had 10 branch locations as of September 30, 2023.

Who served as the exclusive financial advisor to Piedmont Federal?

Performance Trust Capital Partners served as the exclusive financial advisor to Piedmont Federal.