Another M&A domino has fallen in North Carolina.
The $3.4 billion-asset First Bancorp in Southern Pines, N.C., has agreed to buy the $706 million-asset Carolina Bank Holdings in Greensboro, N.C., for $97.3 million, or $19.26 a share, in cash and stock. The deal, which is expected to close by the first quarter of 2017, values Carolina Bank at 155% of its tangible book value.
Carolina Bank has eight branches, $491 million in loans and $601 million in deposits.
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Executives at NewBridge Bancorp share insiders' views on the challenges of making loans and pursuing M&A in a state where big banks, regionals and well-funded community banks have created heavy competition.
December 9 -
NewBridge Bancorp in Greensboro, N.C., has agreed to buy Premier Commercial Bank in Greensboro.
October 9 -
Capital Bank Financial in Coral Gables, Fla., has agreed to buy CommunityOne Bancorp in Charlotte, N.C.
November 23 -
The North Carolina company had worked hard over the last five years to address credit issues and return to acquisitions. In the end, the company agreed to sell itself for a healthy premium to the states biggest community bank.
October 13
"Carolina Bank is an outstanding addition … as we continue our expansion into higher growth markets,"
First Bancorp
The acquisition is expected to be accretive to First Bancorp's earnings by double digits. The company said it plans to cut Carolina Bank's noninterest expenses by 40%; there are three overlapping branches and redundant mortgage operations.
First Bancorp said it expects to incur about $9.2 million in after-tax merger-related charges.
The company also said it has opportunities to offer wealth management, insurance, credit cards and treasury services to Carolina Bank's customers.
"The combination provides strong value for our shareholders, including the opportunity to benefit as First Bancorp shareholders going forward," Robert Braswell, Carolina Bank's president and chief executive, said in the release. "The combination also provides valuable additional products and services for our customers, an expanded branch network, and new opportunities for our employees."
Several community banks in North Carolina have agreed to be sold in recent months, including
First Bancorp
Keefe, Bruyette & Woods and Nelson Mullins Riley & Scarborough advised First Bancorp. Sandler O'Neill and Wyrick Robbins Yates & Ponton advised Carolina Bank.