Park National in Newark, Ohio, has agreed to buy NewDominion Bank in Charlotte, N.C.
The $7.5 billion Park said in a press release Tuesday that it will pay $76.4 million in cash and stock for the $338 million-asset NewDominion, which would become a division of Park's bank. The deal is expected to close in mid-2018.
NewDominion, the last community bank based in Charlotte's city limits after a wave of M&A, will keep its name, local leadership and board and local decision making processes.
Park already owns a nearly 9% stake in NewDominion following a $3.5 million investment it made in November 2016.
Park National has 11 community bank divisions, each run by local leadership. The banks share operational, technology, compliance and administrative resources while maintaining local identities and commitments.
“I’m so proud of the commitment and effort our teammates have made to transform our bank and look forward to seeing the even greater impact we’ll be able to make in our community and with our clients across the region, NewDominion CEO Blaine Jackson said in the release.
"Having the strength of Park National Bank behind us is going to take us all, our clients included, to the next level," Jackson added.
NewDominion’s leadership had spent several years cleaning up the balance sheet. Nonaccrual loans, which hit $30 million at the end of 2010, totaled just $294,000 on Sept. 30.
The bank has made more progress since then. Last year loans increased by 14%, reversing a 1% decline in 2016. Deposits grew by 9% after falling a year earlier. The bank launched a major rebrand about 18 months ago that focuses on its local ties and younger clients.
“The bankers at NewDominion are a welcome addition to our organization," Park CEO David Trautman said in the release.
"We have common values and principles regarding community banking and delivering extraordinary service," Trautman added. Jackson "and his team are doing great work in a thriving city, and we can provide them new and enhanced options to offer their personal and business clients."
Boenning & Scattergood and Squire Patton Boggs advised Park. Sandler O’Neill and Wyrick Robbins Yates & Ponton advised NewDominion.