Carolina Alliance Bank, PBSC Financial Corporation, and Pinnacle Bank Announce Shareholder Approval of Merger

SPARTANBURG, SC – Carolina Alliance
Bank (OTCQX:CRLN), PBSC Financial Corporation (PBSC), and PBSC’s
wholly-owned subsidiary, Pinnacle Bank of South Carolina (Pinnacle)
jointly announced today that the previously announced merger, under
which PBSC and Pinnacle will merge with and into Carolina Alliance, has
been approved by each entity’s shareholders. Special meetings of
Carolina Alliance shareholders and PBSC shareholders were held on June
29, 2015 and June 25, 2015, respectively. The merger is expected to
close in October of 2015, subject to receipt of regulatory approvals.

“Both Carolina Alliance and Pinnacle are committed to serving each
community in which we operate through experienced local bankers,” said
John Poole, Chief Executive Officer of Carolina Alliance. “This
combination sharpens the vision upon which our bank was founded:
knowledgeable bankers offering consultative financial advice through a
local financial institution,” noted David Barnett, President and Chief
Executive Officer of PBSC and Pinnacle. He added, “The resulting larger
and stronger financial institution allows us to continue serving our
existing communities – and new ones – with a significantly higher
lending limit, expanded product offerings, and the ability to generate
efficiencies, which we believe in turn will increase profitability.”

Carolina Alliance began operations in January 2007 and is headquartered
in Spartanburg, South Carolina and serves its customers through seven
offices throughout the upstate of South Carolina and western North
Carolina. More information about Carolina Alliance can be found on its
website at www.carolinaalliancebank.com.

Headquartered in Greenville, South Carolina, Pinnacle opened for
business in January 2006 and serves upstate South Carolina from offices
in Greenville, Powdersville, and Easley. For more information, please
see PBSC’s website at www.PinnacleBankSC.com.