Troy, North Carolina-based First Bank, a subsidiary of First Bancorp, has entered into a purchase and assumption agreement with the Federal Deposit Insurance Corporation (FDIC), as receiver for Wilmington, North Carolina-based Cooperative Bank. The North Carolina Commissioner of Banks issued an order providing for the closing of Cooperative Bank and appointed the FDIC as receiver.
Under the terms of the agreement, all deposits are being assumed by First Bank with no losses to any depositor. First Bank has purchased approximately $974 million in total assets, including $835 million in loans, and assumed $873 million in liabilities, including $717 million in deposits. The loans being purchased are covered by a loss share agreement between the FDIC and First Bank which affords First Bank significant loss protection. First Bank is receiving a discount of $123 million on the assets and is paying a 0% deposit premium.
The customers of both banks can continue to bank as they normally do at their existing branches until First Bank fully integrates the loan and deposit records of Cooperative Bank. Depositors may withdraw their CD deposits without penalty until maturity.
Jerry Ocheltree, President and CEO of First Bank, said: “We warmly welcome the customers of Cooperative Bank as valued customers of First Bank. Like Cooperative Bank, First Bank has provided the best in community banking to its customers for over 70 years. Most importantly, all customers can be confident that their deposits are safe and readily accessible. It will be business as usual on Monday morning, and you can expect to see the same friendly faces serving you. First Bank is a well-capitalized and strong bank, and we look forward to serving you for many years to come.”
Janney Montgomery Scott, acted as financial advisor to First Bancorp in this transaction.
