Park National in Newark, Ohio, has agreed to buy CAB Financial in Spartanburg, S.C.

The $7.5 billion-asset Park said in a press release Thursday that it will pay $141.8 million in cash and stock for the parent of the $730 million-asset Carolina Alliance Bank. The deal, which is expected to close in the first half of 2019, priced CAB at 186% of its tangible book value.

CAB has seven branches in North Carolina and South Carolina and a loan production office in Charlotte, N.C.

“We believe in community banking excellence, and Carolina Alliance bankers share those principles and practices,” David Trautman, Park’s CEO, said in the release.

With the deal, Park is looking to build on its July acquisition of NewDominion Bank in Charlotte.

Park said the deal should be 3% accretive to its earnings per share in its first full year. It should take a little more than three years to earn back the expected 1.9% dilution to Park’s tangible book value.

Park said it plans to cut about a third of CAB’s annual noninterest expense. It also expects to incur about $12.7 million in merger-related expenses.

Sandler O’Neill and Squire, Patton & Boggs advised Park. FIG Partners and Nelson Mullins Riley & Scarborough advised CAB.

Capital Community banking M&A North Carolina Ohio South Carolina