The merger will result in the largest community bank headquartered in North Carolina with approximately $4 billion in assets. The transaction would be worth approximately $299 million on the effective date based on Yadkin's closing price of $17.31 on Jan. 24. VantageSouth shareholders will receive 0.3125 shares of Yadkin Financial common stock for each share of VantageSouth common stock they own.
"It is with great enthusiasm that we announce the merger of these two strong community banks," said Yadkin president and CEO Joe Towell in a statement. "This transaction creates significant value for the shareholders of both companies, provides greater convenience and services for our customers, and transforms the banking landscape in the Carolinas. We will have meaningful presence in major markets across the state including Charlotte, Raleigh-Durham, Greenville, and Wilmington while continuing our focus on our community markets."
"This merger-of-equals creates a strong community banking franchise with greater competitive advantage, profitability, and future growth potential," said VantageSouth president and CEO Scott Custer in the statement. "The breadth of the joined franchise, combined with the talent of the two teams will create exceptional service for our customers. Our companies have spent considerable time evaluating the philosophies of our two banks and the merits of this transaction and we believe we are creating a franchise with substantial upside."
TheStreet Ratings team rates YADKIN FINANCIAL CORP as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: