First Community Bankshares in Bluefield, Virginia, has agreed to acquire Surrey Bancorp in Mount Airy, North Carolina, for $113.2 million.
The all-stock deal, expected to close in the second quarter, would give the $3.2 billion-asset First Community an additional $500 million of assets and lending teams specializing in small to midsize commercial clients. Surrey's bank unit, Surrey Bank & Trust, also has expertise in government-guaranteed loan programs.
Surrey Bancorp President Pedro Pequeno II along with other top executives and bankers plan to join the First Community team, according to a press release Friday announcing the deal.
"First Community's commercial loan customers will benefit from Surrey's government guarantee lending expertise, and Surrey's customers will benefit from the additional scale, increased lending limits, and enhanced product and technology offerings," William Stafford II, chairman and CEO of First Community, said in the release.
First Community expects the transaction to be minimally dilutive to its tangible book value per share while providing mid-single-digit accretion to earnings per share.
Performance Trust Capital Partners served as financial adviser, and Bowles Rice LLP was the legal counsel to First Community. Raymond James & Associates was the financial adviser, and Brooks, Pierce, McLendon, Humphrey & Leonard LLP was the legal counsel to Surrey Bancorp.
