SALISBURY, N.C., April 20, 2011 /PRNewswire/ -- Community Bank of Rowan announced today that it has completed its transaction with Piedmont Community Bank Holdings, Inc., based in Raleigh.
"Joining Piedmont will give Community Bank of Rowan access to substantial additional capital," said Bruce Jones, chief executive officer of Community Bank of Rowan. "This will allow our bank to continue to grow and support customers in Rowan County."
Piedmont paid cash to purchase 100 percent of the shares of Community Bank of Rowan, which has banking offices in Salisbury and China Grove. The nine-member local board of directors and bank management remain in place, as do the bank's 23 employees.
Scott Custer, chief executive officer of Piedmont Community Bank Holdings, said, "The additional capital from Piedmont will help Community Bank of Rowan build on its success in Rowan County. We are excited to be working with the Community Bank of Rowan's team."
Capitol Bancorp Limited (OTCQB: CBCR) of Lansing, Mich., owned 51 percent of Community Bank of Rowan, with the remaining 49% being held predominantly by local investors. With today's transaction, Community Bank of Rowan becomes a wholly-owned subsidiary of Piedmont.
Community Bank of Rowan opened its first office in China Grove in February 2006. The Salisbury main office opened in May 2006 at the former home of the National Sportscasters and Sportswriters Hall of Fame, at North Long and East Innes streets.
As of December 31, 2010, Community Bank of Rowan had $140.3 million in assets and $126.4 million in deposits.
Keefe, Bruyette & Woods acted as financial advisor to Capitol and Honigman Miller Schwartz and Cohn LLP acted as legal counsel. Brooks, Pierce, McLendon, Humphrey & Leonard LLP acted as legal counsel to Community Bank of Rowan. Bryan Cave LLP acted as legal counsel to Piedmont.
About Piedmont Community Bank Holdings, Inc.:
Piedmont Community Bank Holdings, Inc. is a federally-chartered bank holding company based in Raleigh, N.C. Piedmont was formed in 2009 by local businessmen Adam Abram and Scott Custer to build a strong community banking franchise across the Carolinas and Virginia, a region in which Abram and Custer have a combined 50 years of experience in the financial services sector. Abram serves as chairman of Piedmont's board of directors, Steven Lerner serves as vice chair and Custer serves as Piedmont's president and chief executive officer.
Investors in Piedmont include investment funds managed by Stone Point Capital LLC, Lightyear Capital LLC, the State of Wisconsin Investment Board, Harvard Management Company, Keeneland Capital LLC, and numerous North Carolina-based companies and individuals. In February 2010, Piedmont acquired approximately 62 percent of the outstanding equity in VantageSouth Bank, a community bank based in Burlington, N.C., and has announced the acquisition of a majority stake in Crescent State Bank in Cary, N.C. which is pending regulatory approval.
SOURCE Piedmont Community Bank Holdings