That value excludes the exchange of $20.5 million in preferred stock issued to the U.S. Department of the Treasury in connection with Citizens South's participation in the Small Business Lending Fund. Closing of the transaction is expected to occur in the fourth quarter of 2012.
As soon as practicable following the closing, it is anticipated that Citizens South Bank will merge with and into Park Sterling Bank.
Under the terms of the merger agreement, Citizens South shareholders will have the right to receive either $7 in cash or 1.4799 Park Sterling shares for each Citizens South share they hold, subject to the limitation that the total consideration will consist of 30 percent in cash and 70 percent in Park Sterling shares.
Citizens South shares exchanged for stock will convert to Park Sterling shares in what is intended to be a tax-free exchange. Cash will also be paid in lieu of fractional shares.
Park Sterling's primary market area consists of the Charlotte and Wilmington, N.C., metropolitan statistical areas. Incorporated in 2006, the company is a North Carolina-chartered commercial bank, offering deposit and loan banking services.
Its primary focus is to provide personal banking services to mid-sized businesses, real estate development and construction firms, business owners, executives, professionals, higher-net worth retail customers and others doing business or residing within its target markets.
Source: Norris R. Woody of AXA Advisors, LLC, at 19900 W. Catawba Ave., Suite 207, Cornelius. Contact him at 704-895-7475 or at www.norriswoody.com. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice.