First Bancorp To Acquire Carolina Bank For $97.3 Mln In Cash, Stock Deal

(RTTNews) - First Bancorp (FBNC), the parent company of First Bank, announced Wednesday that it has signed a definitive merger agreement to acquire Carolina Bank Holdings, Inc. (CLBH), the parent company of Carolina Bank. The cash and stock transaction will have a total current value of approximately $97.3 million, or $19.26 per share.

The merger agreement has been unanimously approved by the boards of directors of each company. The deal is expected to close in the fourth quarter of 2016 or first quarter of 2017 and is subject to customary conditions.

Subject to the terms of the merger agreement, Carolina Bank Holdings shareholders will receive either 1.002 shares of First Bancorp's common stock or $20 in cash for each share of Carolina Bank Holdings common stock.

Carolina Bank currently operates eight banking locations. It reported assets of $706 million, gross loans of $491 million and deposits of $601 million as of March 31, 2016.

First Bancorp said the acquisition complements its recent branch exchange announcement and the hiring of a team of bankers in the Piedmont Triad area.

Upon completion of the acquisition, the combined company will have approximately $4.1 billion in assets, $3.0 billion in loans and $3.4 billion in deposits.

In the deal, Keefe, Bruyette & Woods, Inc. served as financial advisor to First Bancorp. Sandler O'Neill + Partners served as financial advisor to Carolina Bank.