WINSTON-SALEM, N.C. — Southern Community Financial Corp. became a sign of the changing times in the banking industry Tuesday.
Capital Bank Financial Corp., a Charlotte private-equity group, said it is buying Southern for $2.875 a share, or a deal valued at $48 million.
Southern’s share price closed Monday at $1.96 a share. It had traded between $1 and $2.27 a share over the past 12 months.
The deal would bring to Capital assets of $1.5 billion, 22 branches and its first major presence in the Triad. Capital, founded in 2009, would then have $8.1 billion in assets and 165 branches in five states.
Essentially, the same resilience that helped Southern survive the financial crisis of 2007-11 made the Winston-Salem bank a takeover target too attractive to remain independent.
That was especially true at a time when Capital could buy Southern at 70 percent off its value of $10 a share before the housing bubble burst in 2007.
This article was written by Richard Craver and originally published by The Winston-Salem Journal. Click here to read more.