BNC Bancorp in High Point, N.C., has agreed to buy KeySource Financial Inc. in Durham, N.C., in an all-stock deal valued at $12.2 million.
BNC, the $2.4 billion-asset parent of Bank of North Carolina, said in a news release Wednesday that it will exchange one share of its stock for each outstanding share of the $205.8 million-asset KeySource. The deal's value is based on BNC's closing price Tuesday.
The price tag equals 60% of KeySource's tangible book value, BNC says. The deal is expected to close in the second quarter and would be immediately accretive to earnings per share, BNC says.
It also would increase BNC's presence in the Raleigh-Durham market to two branches with $220 million of loans and $187 million of deposits. BNC emphasized that a majority of KeySource's outstanding credits were originated after the initial declines in real estate values in 2008, and that most of the seller's problem credits are concentrated in three relationships.
"We are excited about the opportunity to expand our market presence in the Triangle area of North Carolina with such a talented group of bankers," Swope Montgomery, BNC's president and chief executive, said in the news release. "We look forward to welcoming the shareholders and customers of KeySource to the Bank of North Carolina family."
This is BNC's third deal in several months. In October it
