Piedmont of N.C. to Merge its Two Banks

A private-equity backed North Carolina holding company is acquiring the remaining shares of VantageSouth Bank that it does not already own and merging the bank with its other subsidiary.

Piedmont Community Holdings Inc. in Raleigh was formed in 2009 to roll up community banks in the Carolinas and Virginia. It acquired a 62% stake in VantageSouth in early 2010 and said late Wednesday that it is buying the remaining outstanding shares at $4.25 each.

Upon completion of that transaction, Piedmont intends to merge the $91 million-asset VantageSouth with the five-year-old Community Bank of Rowan, which it acquired in February from Capitol Bancorp Ltd. The combined bank, which would operate under the VantageSouth Bank brand, would have nearly $140 million of assets and four offices.

Piedmont, which is headed by local businessmen Adam Abram and Scott Custer, said that the board and management team of the VantageSouth would be restructured to include directors and officers from both banks.

Piedmont also has a deal in the works to acquire a majority stake in the $946 million-asset Crescent Financial Corp. in Raleigh. That deal, announced in February, is still awaiting regulatory approval.