Cardinal State Bank has merged with and into Yadkin Valley Bank and Trust Company, a wholly owned subsidiary of Yadkin Valley Financial Corporation, in a cash and stock deal whereby Cardinal shareholders will receive $23.5 million in cash and approximately 884,000 shares in company stock.
In addition holders of Cardinal stock options will receive $0.9 million in cash and approximately 140,000 options to buy shares of company stock at an average price of $13.03 per share.
The total consideration for stock and options of approximately $42 million is based on the company stock price of $19.01 per share on June 14, 2007, which was the date of the merger agreement.
The $23.5 million in cash and the 884,000 new shares of company common stock will be distributed to Cardinal shareholders after the shareholder election and certificate transmittal forms have been tabulated.
The bank will serve 11 counties in central and western North Carolina through its 28 full-service branches.