Officials associated with Community Bank of the Carolinas, which ended its start-up efforts in June 2019, agreed to buy a controlling interest in Brighton, Tenn.-based Brighton Bancorp Inc., the Winston-Salem (N.C.) Journal reported March 27.
The officials, including Simpson Brown Jr., who led the start-up process for Community Bank of the Carolinas, signed the stock purchase agreement for the all-cash deal, according to the report. Specific financial terms were not disclosed.
S&P Global Market Intelligence valuations for bank and thrift targets in the Southeast region between March 27, 2019, and March 27, 2020, averaged 155.52% of book and 162.87% of tangible book and had a median of 16.82x last-12-months earnings on an aggregate basis.
A loan production office will be opened at 312 Jonestown Road in Winston-Salem, the same site where Community Bank previously expected to open its first branch before ending its start-up efforts.
Once approved by regulators, the Jonestown Road location will become a full-service branch carrying the Community Bank brand. Brighton will continue operating under the current name.
Brown will serve as Brighton CEO, while Brighton President and CEO John Phillips will be named market president of Tipton County, Tenn.
The bank's board will be composed of investors in the Triad area and proposed officers in Community Bank. Brighton will be entitled to three board seats.
Brighton's banking subsidiary, Brighton Bank, had $41.7 million in total assets as of Dec. 31, 2019, according to S&P Global Market Intelligence data.
Based on S&P Global Market Intelligence data, Brighton Bancorp operates one branch in Tipton County, Tenn., ranked seventh with a 5.19% share of about $629.5 million in total market deposits.
Olsen Palmer LLC advised Brighton for the transaction.