Hampton Roads to Sell Three Branches in North Carolina

Hampton Roads Bankshares (HMPR) of Norfolk, Va., has found new buyers for three of its Gateway Bank & Trust branches it had previously agreed to sell to ECB Bancorp (ECBE).

First Bancorp (FBNC) of Troy, N.C., has agreed to purchase the deposits and certain loans of the Gateway branch in Wilmington, N.C. The $3.3 billion-asset First Bancorp will transfer the acquired accounts to one of its branches. The $1.9 billion-asset Hampton Roads said Monday that it will then close that Gateway branch but will continue to offer mortgage services in Wilmington through Gateway Bank Mortgage.

BNC Bancorp (BNCN) of High Point, N.C., said Monday in a separate release that its bank, Bank of North Carolina, had agreed to acquire the deposits of Gateway branches in Cary, N.C., and Chapel Hill, N.C. The $2.5 billion-asset BNC will also acquire the land, building and furniture, fixtures and equipment of the Cary branch and the lease for the Chapel Hill branch. BNC intends to continue to operate these locations.

The deal will accelerate BNC's goal of "having a billion dollar presence in the Triangle," Richard D. Callicutt II, president of Bank of North Carolina, said in a news release. In December, BNC said it would acquire KeySource Financial in Durham, N.C.

The financial terms of the deals were not disclosed. The Wilmington branch deal is expected to close in the third quarter.

ECB of Engelhard, N.C., had agreed to buy the deposits and certain assets of seven North Carolina branches from Hampton Roads. However, funding for the deal fell through when ECB could not complete a planned capital raise because an investor did not receive regulatory approval.

Hampton Roads said in June that it was looking to sell 10 branches and its mortgage and insurance businesses to cut costs and focus on its core markets. The bank lost $98.6 million in 2011 and blast turned a profit in the first quarter of 2009.