By Dan McCue

A $59.3 million merger announced Monday between First National Bancshares Inc. http://www.firstnational-online.com  and the Carolina National Corp. http://www.carolinanationalbank.com/ is a marriage of like-minded financial companies that together will have a footprint spanning the Palmetto State, First National’s chief executive said Tuesday.

The merger, which still faces regulatory and shareholder approval, also will substantially increase the combined company’s ability to make loans while reducing the regulatory costs the two companies currently bear independently, added Jerry L. Calvert, First National’s president and CEO.

“There’s no question this will result in a stronger bank and will accelerate the speed of our growth,” said Calvert, who as Spartanburg-based First National’s top executive will head the ninth- largest financial institution headquartered in South Carolina if the deal is approved.

The combined company will have nearly $800 million in assets, more than $650 million in net loans and about $636 million in deposits on a pro-forma basis. The combined banking companies will operate under the First National Bancshares name.
First National currently has two branches in Charleston, three full-service branches in Spartanburg, one branch in Greenville and one branch in Greer. It also operates two loan offices, one on Daniel Island and the other in Rock Hill.

Columbia-based Carolina National has four full-service branches in Columbia.

After the merger and the completion of the long-planned conversion of First National’s Rock Hill loan office into a full-service branch, the combined bank will have 11 full-service branches across the state.

Calvert said that while First National has long focused on organic growth, it had never ruled out the possibility of a merger with another financial institution.

“I think in a sense, we’ve always been very similar companies with a very similar interest in going after the consumer, professional and small- to mid-size business market,” Calvert said of First National and Carolina National.

“The other thing we’ve had in common is a focus on the high-growth areas of the state,” he continued. “And if you look at the markets we serve, you’ll see that in each of them 50 percent or more of the current market share is controlled by just three banks.”

Calvert said because there is little geographic overlap between the two companies, the merger will not displace large numbers of workers. He said First National will work to find other employment for those whose jobs are eliminated.

The combined company is expected to employ about 170.