THOMASVILLE, N.C. and
ALBEMARLE, N.C., April 1, 2014 /PRNewswire/ -- BNC Bancorp
(NASDAQ: BNCN), the parent company of Bank of North Carolina ("BNC" or "the Bank"), today
announced the successful completion of its merger with South Street
Financial Corp. ("South Street"), the parent company of Home
Savings Bank of Albemarle, Inc.
SSB ("Home Savings"), thereby expanding BNC's presence in
Stanly and Montgomery Counties in the Charlotte, North Carolina Metropolitan
Area.
BNC previously announced its plans to acquire South Street and
Home Savings on December18, 2013. As of December 31, 2013, Home Savings had total assets
of $278 million, total loans of $195
million and deposits of $235
million. The former branches of Home Savings will be
operated as branches of BNC under the name of Home Savings until
system conversions are completed in June, 2014.
Rick Callicutt, President and CEO
of BNC, commented: "We are extremely pleased to welcome Home
Savings' customers, shareholders and employees to the Bank of
North Carolina family. The
completion of this strategic transaction is consistent with our
long-term plan to partner with quality organizations, enhance our
presence in desirable markets and provide our diverse financial
product suite to new customers."
Ron Swanner, President and CEO of
South Street, commented: "We are pleased to be joining with BNC and
Bank of North Carolina. We believe the merger provides
significant value to our shareholders and offers our customers the
benefit of banking locations across North
Carolina and in South Carolina. The customers and the
communities formerly served by Home Savings will also benefit from
the broader range of products and services offered by Bank of North
Carolina. We are also pleased that our employees will be
joining a larger company with more opportunities for
advancement."
Commenting on the acquisition, Rick
Callicutt said, "The completion of this merger is a product
of a lot of effort and great teamwork between the BNC and South
Street organizations. We are excited to work closely with
South Street's talented team of bankers to effectively deliver the
BNC platform to new and existing customers throughout Albemarle, Locust, Oakboro and the surrounding communities."
The Agreement provides for the common shareholders of South
Street to elect to receive cash in an amount of $8.85 per share or 0.6000 shares of BNC common
stock, for an aggregate deal value for common shareholders of
approximately $26.0 million, based on
the closing price of BNC common stock on March 31, 2014. Eighty percent of the total
consideration received by the South Street common shareholders will
be BNC voting common stock and the remainder will be cash. As
a result of the transaction, BNC acquired two branches in
Albemarle, North Carolina and one
each in Locust and Oakboro, North Carolina. BNC now has
approximately $881 million in loans
and $738 million in deposits in the
Charlotte MSA.
For the merger, BNC Bancorp and its subsidiary, Bank of
North Carolina, were advised by
Banks Street Partners, LLC, as financial advisor, and Womble Carlyle Sandridge & Rice, LLP as
legal advisor, both in Atlanta.
South Street was advised in this transaction by Raymond James & Associates, Inc., as
financial advisor, and Brooks, Pierce, McLendon, Humphrey &
Leonard, L.L.P., as legal advisor.
Forward Looking Statements
The press release contains forward-looking statements relating
to the financial condition and business of BNC and its subsidiary,
Bank of North Carolina. These
forward-looking statements involve risks and uncertainties and are
based on the beliefs and assumptions of the management of BNC, and
the information available to management at the time that this press
release was prepared. Factors that could cause actual results to
differ materially from those contemplated by such forward-looking
statements include, among others, the following that may diminish
the expected benefits of the merger: (i) general economic or
business conditions in the Greensboro-High
Point and Charlotte MSAs; (ii) greater than expected costs
or difficulties related to the integration of Home Savings; (iii)
unexpected deposit attrition, customer loss or revenue loss
following the merger with South Street, and (iv) the failure to
retain or hire key personnel. Additional factors affecting BNC and
Bank of North Carolina are
discussed in BNC's filings with the Securities and Exchange
Commission (the "SEC"), including its most recent Annual Report on
Form 10-K, its Quarterly Reports on Form 10-Q and its Current
Reports on Form 8-K. You may review BNC's SEC filings at
www.sec.gov. BNC does not undertake a duty to update any
forward-looking statements made in this press release.
About BNC Bancorp and Bank of North
Carolina
BNC Bancorp is the parent company of Bank of North Carolina, an approximately $3.5 billion-asset commercial bank. Bank of
North Carolina provides banking
and financial services to individuals and businesses through its 45
full-service banking offices in North and South Carolina.
Bank of North Carolina is insured
by the FDIC and is an equal housing lender. BNC Bancorp's stock is
quoted in the NASDAQ Capital Market under the symbol "BNCN."
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SOURCE BNC Bancorp