Wednesday, December 18, 2013 —
Bank of North Carolina is set to buy Home Savings Bank of Albemarle for $23.7 million, the financial institutions announced Wednesday.
The deal calls for BNC to pay Home Savings Bank shareholders $8.85 per share. As a result, BNC will acquire two Home Savings branches in Albemarle, one in Locust and another in Oakboro.
“This all came out of the blue,” said Ron Swanner, president and chief executive officer at South Street Financial Corp., the parent company for Home Savings.
“The Bank of North Carolina came to see us,” he said.
“We have a responsibility to our shareholders to listen.”
Home Savings’ board of directors voted in favor of the buyout. Next, shareholders will vote via a mailed proxy by February, Swanner said. If approved, the closing will take place in April.
BNC will acquire the private bank’s portfolio of $195.5 million in loans and $238.1 million in deposits. At the time of closing, BNC will have approximately $865 million in loans and $725 million in deposits for the Charlotte region.
Swanner said the sell to BNC is a great deal for everyone involved.
“Our shareholders will be getting a great return on their investment,” Swanner said. “Our customers will have access to a large bank with more services. Our employees will have more opportunities for advancement.”
Because BNC averages as many as 35,000 trades daily, compared to Home Savings’ 200, selling shareholders will benefit from greater stock liquidity, Swanner said.
BNC, which also announced Wednesday the acquisition of the Harrington Bank of the Chapel Hill area, continued its recent trend of buying smaller banks in North Carolina.
“Our companies share the same core values of trust and service that are critical to operating a successful, vibrant organization,” Rick Callicutt, president and CEO of BNC, said in a press release.
“We look forward to the opportunity to bring a wide range of financial services to the customers and citizens of Albemarle, Oakboro and Locust,” he added.