SouthPoint Bancshares, Inc. and Merchants Financial Services, Inc. jointly announce the execution of a definitive merger agreement under which Merchants will merge with SouthPoint in a merger in which 50% of the aggregate consideration will be paid in cash and the remaining 50% will be exchanged for shares of SouthPoint common stock. Merchants Bank of Alabama will continue to operate under its current name as a division of SouthPoint Bank after completion of the merger. Merchants President, CEO and Senior Lender Charles R. NeSmith will become President of North Alabama for SouthPoint and likewise, EVP and CFO W. Clark Rainwater will become CFO of the combined organization. Additionally, three directors from Merchants will join the Board(s) of Directors of SouthPoint and SouthPoint Bank.