RALEIGH, N.C. - Dogwood State Bank (OTC: DSBX) and Community First Bancorporation (OTC: CFOK), the parent company of Community First Bank (NASDAQ:FRBA), Inc., have announced the receipt of all necessary regulatory approvals for their planned merger.
The approval process included endorsements from the shareholders of both institutions. This merger, set to be finalized on August 1, 2024, will result in a combined entity with assets totaling approximately $2.13 billion.
The merger, once completed, will bring together Dogwood's $1.45 billion in total assets with Community First's $684 million. The combined company is expected to have a loan portfolio of $1.66 billion and deposits amounting to $1.80 billion.
Steve Jones, CEO of Dogwood State Bank, expressed confidence in the merger's potential to create enhanced value for customers, employees, and shareholders, while also looking forward to the opportunities that lie ahead for the unified organization.
Dogwood State Bank, headquartered in Raleigh, North Carolina, is a state-chartered community bank that offers a range of banking products and services. It operates both online and through branch offices located throughout North Carolina, aiming to redefine community banking by focusing on businesses, business owners, professionals, and their employees.
Community First Bancorporation operates as a multi-state bank holding company with a presence in South Carolina, North Carolina, and Tennessee. It maintains several full-service financial centers and offers various financial services, including credit cards, business and personal loans, and deposit products.
The announcement of this merger is based on a press release statement and includes forward-looking statements regarding the anticipated benefits and expectations surrounding the merger. These statements involve certain assumptions and expectations that are subject to a number of risks and uncertainties.
Factors such as integration challenges, customer retention, and economic conditions could impact the success of the merger and the future prospects of the combined company. The companies have stated they will not update the forward-looking statements provided in the press release.
InvestingPro Insights
As Community First Bancorporation (OTC: CFOK) prepares to merge with Dogwood State Bank, the latest data from InvestingPro reveals a mixed financial landscape for CFOK. Despite a challenging revenue trend, the company has managed to remain profitable over the last twelve months.
According to InvestingPro, CFOK's revenue declined by 20.26% in the last twelve months as of Q1 2024, reflecting a notable contraction. Still, the company's profitability is underscored by an operating income margin of 20.81% during the same period, indicating efficient management of its operating expenses.
InvestingPro Tips suggest that CFOK suffers from weak gross profit margins, which could be a concern for investors looking for robust financial health, especially in the context of a merger. Moreover, the company does not pay a dividend to shareholders, which might influence the investment decisions of those seeking regular income streams.
The market has responded with caution to CFOK's performance and outlook, with the stock trading at 84.27% of its 52-week high and experiencing a modest 1.36% price increase over the past month.
For investors seeking a more in-depth analysis of CFOK and its prospects, especially in the light of the upcoming merger with Dogwood State Bank, InvestingPro offers additional tips. Subscribers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/CFOK. There are several more InvestingPro Tips available, providing valuable insights into the company's financial health and performance metrics.
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