Greensboro loses one other establishment with the sale of Carolina Financial institution | Native information
“If there has ever been a heavenly marriage, this is as close as we will ever find it,” said Braswell.
The decision to sell was difficult, he admitted. Every year the bank prepares a strategic plan. Last November, the board decided to make a change as “financial headwinds” such as low interest rates and growing regulations meant that the bank may not be able to distribute dividends to shareholders.
So the choice was to grow through acquisitions or sell to another bank.
Braswell and the bank’s board of directors knew the importance of their decision as they weighed whether to sell the 20-year-old bank and what type of buyer they would seek.
“We looked at acquiring other banks, but we ran into issues with them,” said Braswell. “We decided to evaluate the value of our company and the only way to do that was by entertaining offers.”
So they talked to a lot of banks before deciding to sell to those with a similar corporate culture and a promise to keep the people and the business philosophy.
After all, a community bank is an institution of a special kind. Unlike Wells Fargo or Bank of America, an institution like Carolina Bank often makes loans through relationships, not always in numbers, and that’s a lot of what Carolina Bank does here did.