As per the agreement and plan of merger, the transaction is valued at nearly $35m, and the shareholders of First Trust will receive 0.98 shares of BNC voting common stock for each share of First Trust common stock, or cash in the amount of $7.25 per share.
According to the acquirer, the deal will consist of 70% BNC stock and 30% cash.
Upon the successful execution of the merger, BNC will have three new branches in metro Charlotte, $228m in loans and $374m in deposits as well as more than $650m in loans and $589m in deposits in the Charlotte Metro area.
Under the terms of the agreement, James T Bolt Jr, president and CEO of First Trust, will join BNC’s board of directors and act as an executive vice president of the Bank.
The bank said that the deal will leverage it to expand its businesses into commercial banking segment by providing convenient services to its customers.
The deal is expected to complete during the fourth quarter of current fiscal, after getting regulatory and First Trust’s shareholders approval.
BNC Bancorp and its subsidiary, Bank of North Carolina received financial advice from FIG, and Keefe, Bruyette & Woods with Womble Carlyle Sandridge & Rice served as legal advisor.
First Trust was advised by Sandler O’Neill + Partners, as financial advisor and Gaeta & Eveson, in Raleigh as legal advisor.
During the past two years, BNC has completed various acquisitions across North and South Carolina, including Beach First National Bank in Myrtle Beach, South Carolina, Blue Ridge Savings Bank in Asheville, Regent Bank in Greensville, SC, KeySource Commercial Bank in Durham and, most recently, the Cary and Chapel Hill branches of Hampton Roads Bankshares, which is expected to close in the third quarter of 2012.
