Already approved by the boards of directors of the companies, the transaction is likely to complete during the first quarter of 2014, pending regulatory as well as the acquirer shareholders approvals.
Based on the contract terms, the US Treasury will receive $8m out of total $10m cash consideration to release 1st Financial Services from the federal TARP program, while remaining $2m will be given to the common shareholders of 1st Financial Services.
As of 30 June 2013, the acquired entity manages 12 bank offices in western North Carolina communities through Mountain 1st Bank, with $692m in assets, $669m in deposits and $363m.
The branches are situated at Asheville, Brevard, Columbus, Etowah, Fletcher, Forest City, Hendersonville (two branches), Hickory, Marion, Shelby and Waynesville.
First Citizens chairman and CEO Frank Holding Jr., said, "This agreement is a significant opportunity for us to expand our presence in our home state of North Carolina."
Sandler O’Neill + Partners was hired to serve as financial advisor and delivered a fairness opinion to the board of directors of 1st Financial Services pertaining to the transaction.
Instituted in 1898, First Citizens Bank manages 402 bank branches across 17 states as well as the District of Columbia, and delivers an array of financial services to individuals, businesses, professionals and the medical community through a branch offices, telephone, mobile, online banking.
