First Bancorp, the parent company of First Bank, and Select Bancorp, Inc., the parent company of Select Bank and Trust Company (“Select Bank”), announced the signing of a definitive merger agreement under which First Bancorp will acquire Select in an all-stock transaction with a total current value of approximately $314.3 million, or $18.10 per share, based on First Bancorp’s stock price as of May 28, 2021.
The merger agreement has been unanimously approved by the boards of directors of each company. The transaction is expected to close in the fourth quarter of 2021 and is subject to customary conditions, including shareholder and regulatory approval. Subject to the terms of the merger agreement, Select shareholders will receive 0.408 shares of First Bancorp’s common stock for each share of Select common stock.
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Select Bank currently operates twenty-two banking locations in North Carolina, South Carolina, and Virginia and has the leading community bank market share in Fayetteville, NC and a presence in the key North Carolina growth markets of Raleigh, Charlotte, and Wilmington. As of March 31, 2021, Select reported assets of $1.8 billion, loans of $1.3 billion, and deposits of $1.6 billion. The acquisition complements First Bank’s existing footprint and provides entry into several new markets.
“Select Bank is a high quality institution with a long-standing history of service and strong community banking relationships,” said Richard Moore, Chief Executive Officer of First Bancorp. “We are thrilled that the Select Bank team will be joining First Bank, and we look forward to the opportunity to serve their customers.”
Upon completion of the acquisition, the combined company is expected to have over $9 billion in assets, $6 billion in loans, and $8 billion in deposits. This transaction represents an opportunity to further cement First Bank’s position as the preeminent community bank in North Carolina in a way that is attractive for all stakeholders involved.
“We are very excited about this partnership and the unique opportunity it presents,” said Bill Hedgepeth, President, CEO, and Director of Select. “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, Inc. served as financial advisor to First Bancorp and Brooks, Pierce, McLendon, Humphrey & Leonard, LLP provided legal counsel. Raymond James & Associates, Inc. served as financial advisor to Select Bancorp, Inc., and Wyrick Robbins Yates & Ponton LLP served as legal counsel.
