First Bancorp has signed a definitive agreement to acquire Select Bancorp, the parent company of Select Bank and Trust Company, in an all-stock transaction with a total current value of $314.3m.
This transaction has been unanimously approved by the boards of directors of the two firms.
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It is expected to close in the fourth quarter of 2021 following customary conditions, including shareholder and regulatory approval.
Select shareholders will get 0.408 shares of First Bancorp’s common stock for each share of Select common stock.
Currently, Select Bank operates 22 banking locations in North Carolina, South Carolina, and Virginia.
As of 31 March 2021, Select had assets of $1.8bn, loans of $1.3bn and deposits of $1.6bn.
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By GlobalDataThis acquisition complements First Bank’s current footprint and also enables it to foray into several new markets.
First Bancorp CEO Richard Moore said: “Select Bank is a high quality institution with a long-standing history of service and strong community banking relationships. We are thrilled that the Select Bank team will be joining First Bank, and we look forward to the opportunity to serve their customers.”
The merged entity is expected to have more than $9bn in assets, $6bn in loans, and $8bn in deposits.
Select president, CEO, director Bill Hedgepeth said: “We are very excited about this partnership and the unique opportunity it presents. We have long admired First Bancorp, and our combined company will be positioned to capitalize on an enhanced presence in exceptional markets, talent, and financial strength.”
Keefe, Bruyette & Woods served as financial advisor to First Bancorp. Brooks, Pierce, McLendon, Humphrey & Leonard offered legal counsel.
Raymond James & Associates acted as financial advisor to Select Bancorp. Wyrick Robbins Yates & Ponton served as legal counsel.
