BNC Bancorp in High Point, N.C., has agreed to buy a local rival, High Point Bank Corp., for $141.3 million.
The $5.2 billion-asset BNC would pay a combination of stock and cash to shareholders of the $795 million-asset High Point, based on a formula tied to BNC's average stock price over a 20-day period. High Point shareholders would receive $300 for each share, subject to maximum and minimum limits.
BNC plans to fund the cash portion of the deal through an offering of common stock. BNC aims to raise about $50 million from the offering, which is expected to close on Nov. 19.
BNC said the High Point acquisition would be immediately accretive to its earnings in 2016 and 2017. The companies expect the deal to close in the second quarter.
BNC operates 36 branches of Bank of North Carolina in its home state, and an additional 28 branches of BNC Bank in South Carolina and Virginia. High Point Bank & Trust has 12 branches in the Greensboro and Winston-Salem, N.C., areas.
Banks Street Partners was financial adviser to BNC on the High Point acquisition, and Troutman Sanders was its legal counsel. Sandler O'Neill advised High Point and Robinson, Bradshaw & Hinson was its legal counsel.
Stephens Inc. is financial adviser to BNC on the stock offering. Womble Carlyle Sandridge & Rice is legal counsel on the offering.