BNC Bancorp (BNCN) in High Point, N.C., has agreed to buy Harbor Bank Group in Charleston, S.C.
BNC will pay about $51 million in stock for the $306 million-asset Harbor, the holding company for Harbor National Bank. The price represents a 153% premium to Harbor's tangible book value. Harbor also has four branches, $253 million in loans and $250 million in deposits. BNC said the acquisition should be accretive to its 2015 earnings by 4.5%, excluding $3.4 million in expected merger-related expenses.
The acquisition will include "minor" dilution to tangible book value that should be earned back within 18 months, BNC said. The transaction is expected to close on Nov. 30.
Harbor will make BNC one of Charleston's 10 biggest banks, Rick Callicutt, BNC's president and chief executive, said in a press release Thursday. "The Harbor team has spent their entire careers in the Charleston market, which has allowed them to build a great bank that consistently outperforms its peer group," Callicutt added.
BNC said it expects to extract 35% to 40% of Harbor's annual expenses due to "significant branch overlap." The company said it plans to close three branches.
Womble Carlyle Sandridge & Rice advised BNC. Banks Street Partners and Bryan Cave advised Harbor.
BNC entered Charleston in 2012 by buying the failed Carolina Federal Savings Bank from the Federal Deposit Insurance Corp. BNC, an aggressive acquirer in North and South Carolina, recently completed its acquisition of Community First Financial Group in Chapel Hill, N.C.