Piedmont Bancorp, the holding company of The Piedmont Bank, announced today that it has entered into a definitive agreement and plan of merger with Mountain Valley Bancshares, the holding company of Mountain Valley Community Bank, pursuant to which MVB will merge with and into Piedmont and Mountain Valley Community Bank will merge with and into The Piedmont Bank. Following the transaction, it is anticipated that Mountain Valley Community Bank will continue to operate as a division of The Piedmont Bank.
MVB, headquartered in Cleveland, Georgia, and which operates Mountain Valley Community Bank, will add approximately $202 million in assets, $178 million in deposits, and $107 million in gross loans to Piedmont’s operations, along with three branch locations positioned in Cleveland, Jefferson and Gainesville Georgia. MVB and Mountain Valley Community Bank were founded in 2004 and have built a strong deposit franchise, with core deposits representing 100% of total deposits and noninterest-bearing demand deposits representing 38% of total deposits. The composition of Mountain Valley Community Bank’s loan portfolio is complementary to Piedmont’s existing loan portfolio.
“We are very excited to announce our partnership with Mountain Valley Community Bank,” said Monty G. Watson, Chairman and Chief Executive Officer of Piedmont and The Piedmont Bank. “Mountain Valley Community Bank’s dedication to its customers and the communities it serves, along with its strong financial performance, made Mountain Valley Community Bank a natural partner, and we are delighted to welcome Mountain Valley Community Bank’s customers and employees to The Piedmont Bank.”
Marc J. Greene, Chief Executive Officer of Mountain Valley Community Bank, who will serve as the North Georgia Regional President and Chief Risk Officer of The Piedmont Bank following the merger, stated, “We are excited to be joining the Piedmont team. It was of great importance to us to find a partner with strong values, clear strategic vision and financial strength. Our customers, employees and the communities we serve will all benefit from this transaction.”
The boards of directors of both Piedmont and MVB have unanimously approved the transaction. The transaction is expected to close in the third quarter of 2017, and is subject to approval by MVB’s shareholders, receipt of regulatory approvals and other customary closing conditions.
MVB was advised by the investment banking firm The Burke Group and the law firm Miller & Martin PLLC. Piedmont was advised by the investment banking firm Roger G. Powell, LLC and represented by the law firm of Alston & Bird LLP.