SOUTHERN PINES and GREENSBORO, N.C., June 22, 2016–(PRNewswire)–First Bancorp (Nasdaq: FBNC) the parent company of First Bank, announced today the signing of a definitive merger agreement under which First Bancorp will acquire Carolina Bank Holdings, Inc. (Nasdaq: CLBH) the parent company of Carolina Bank, in a cash and stock transaction with 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 transaction is expected to close in the fourth quarter of 2016 or first quarter of 2017 and is subject to customary conditions, including regulatory approval and approval by Carolina Bank Holdings shareholders. 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 $20.00 in cash for each share of Carolina Bank Holdings common stock, subject to the total consideration being 75% stock / 25% cash, which equates to a deal value of $19.26 per share based on First Bancorp’s closing stock price on June 21, 2016 of $18.98.
Carolina Bank currently operates eight banking locations in the Greensboro–High Point, Burlington and Winston-Salem, NC MSAs, along with three mortgage loan offices. Carolina Bank Holdings reported assets of $706 million, gross loans of $491 million and deposits of $601 million as of March 31, 2016. The acquisition complements First Bancorp’s recent branch exchange announcement and the hiring of a team of bankers in the Piedmont Triad area.
“Carolina Bank is an outstanding addition to our company as we continue our expansion into higher growth markets,” said Richard Moore, Chief Executive Officer of First Bancorp, “We are excited to welcome Carolina Bank’s customers, employees, and communities into the First Bancorp family, and look forward to continuing to develop upon the strong foundation Carolina Bank has built in the Piedmont Triad.”