First Citizens plays small ball with coastal S.C. acquisition

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First Citizens BancShares in Raleigh, N.C., has agreed to buy Palmetto Heritage Bancshares in Pawleys Island, S.C.

The $34 billion-asset First Citizens will pay $30 million in cash for the $168 million-asset Palmetto Heritage, Banks Street Partners, the seller’s adviser, said in a press release Wednesday.

The deal, which is expected to close in the fourth quarter, priced Palmetto Heritage at 177% of its tangible book value, Banks Street said.

Palmetto Heritage has three branches, $126 million in deposits and $138 million in loans.

“This agreement will complement and enhance our ongoing commitment to serve the people, businesses and communities of coastal South Carolina,” Frank Holding Jr., First Citizens’ chairman and CEO, said in his company’s press release.

Nelson Mullins Riley & Scarborough served as Palmetto Heritage’s legal counsel. Ward and Smith advised First Citizens.

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