Wilson, N.C.-based CB Financial Corp. chose to pursue an acquisition by Providence Bank over another North Carolina-headquartered acquirer with a cash-and-stock offer.
The two would-be buyers had made bids in January, and Providence increased its all-cash bid in time for a February CB Financial board meeting. Discussions lasted several months, culminating in the August announcement of their merger agreement.
Should the deal fall through, CB Financial will pay a termination fee of $475,000 under certain circumstances; Providence's yet-to-be-formed holding company, PB Financial Corp., will pay $300,000 under other conditions. Reimbursement of up to $250,000 may also be paid.
CB Financial shareholders vote on the merger Oct. 30.