CresCom Bank agrees to buy 13 branches of Va. bank

By Ashley Barker
abarker@scbiznews.com
Published August 7, 2014

Charleston-based CresCom Bank plans to buy 13 branches from First Community Bank of Bluefield, Va., later this year or in early 2015, according to a news release.

Three of the branches are in South Carolina and operate under the name People’s Community Bank, and 10 are in southeastern North Carolina. They have a total of $230 million in deposits, and approximately $59 million in loans. The deposit premium will be about 3.11% of deposits acquired.

CresCom Bank has agreed to buy 13 branches from Virginia-based First Community Bank, including three in South Carolina and 10 in North Carolina. (Photo/Provided)
CresCom Bank has agreed to buy 13 branches from Virginia-based First Community Bank, including three in South Carolina and 10 in North Carolina. (Photo/Provided)

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The S.C. branches are located in Conway, Little River and Heath Springs, and the North Carolina branches are in Chadbourn, Whiteville, Tabor City, Ocean Isle Beach, Holden Beach and Elizabethtown, plus two branches each in Southport and Shallotte, N.C.

Once the transaction, which is subject to regulatory approval and other conditions, is complete, CresCom Bank will have roughly $1.2 billion in assets, $700 million in loans and $1 billion in deposits, according to the release. With the First Community Bank branches and two new branches planned to open later this summer in Cane Bay and Socastee, CresCom Bank will have 27 branch locations. CresCom had $696.1 million in deposits in South Carolina as of June 30, 2013, for 1.02% of the statewide market.

Carolina Financial Corp., the parent company of CresCom Bank, joined the Nasdaq under the ticker symbol CARO earlier this summer.

“Our acquisition of these 13 branches dramatically increases our footprint throughout the coastal region of the Carolinas,” Carolina Financial Corp. President and CEO Jerry Rexroad said in a statement. “This is a reflection of the accretive growth our board of directors and leadership team have been striving toward. These branches are in key markets and coastal regions very similar to our current markets, which will help us continue to deliver quality products and services to customers.”

CresCom Bank currently operates four branches in Myrtle Beach and eight branches in the Lowcountry. The bank also owns and operates Atlanta-based Crescent Mortgage Co., which lends in 43 states.

First Community Bank operates 67 financial centers in West Virginia, Virginia, North Carolina, Tennessee and South Carolina. The bank’s parent holding company is First Community Bancshares Inc., which trades on the Nasdaq under the ticker symbol FCBC.

Selling the branches is intended to “complement First Community’s recently announced plan to acquire seven branches with about $440 million in deposits in southwestern Virginia and central North Carolina,” according to a Form 8-K filed recently with the Securities and Exchange Commission.

Reach staff writer Ashley Barker at 843-849-3144 or @AshleyNBarker on Twitter.

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