NationsBank to buy RHNB unit in S.C.

ROCK HILL, S.C. -- NationsBank Corp. announced an agreement in principal to acquire Rock Hill National Bank from RHNB Corp., in a stock transaction valued at just over $50 million.

Observers noted the price is equal to 2.9 times Rock Hill's stated book value, which reflects $6 million of convertible debentures. If the debentures are converted, the price is equal to a 2.4 times book - still a hefty price for a bank acquisition.

"NationsBank has long been interested in expanding its presence in the Rock Hill-Charlotte metropolitan market, and we're impressed with the RHNB organization," said Joel A. Smith 3d, president of NationsBank Carolinas. "RHNB has had outstanding operating results over the past five quarters. It is a high-performing bank."

As of March 31, RHNB had $257 million of assets. NationsBank has 37 banking centers in the Rock Hill-Charlotte area.

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