TowneBank in Suffolk, Va., said Friday it would purchase The Bank of Currituck in Myock, N.C., for $10 million in cash — the sixth open-bank deal announced in just three days.
The $3.6 billion-asset company will acquire all six of the Bank of Currituck's branches in northeastern North Carolina, including three in the Outer Banks. It will pick up $173 million in assets, including $96 million in performing loans, as well as $173 million in deposits.
The transaction is expected to close in the fall, and is subject to regulatory approvals, as well as the approval of the Bank of Currituck's shareholders.
Following the closing of the transaction, the Bank of Currituck would cease operating as a commercial bank and would manage the assets it retains in the transaction, including some performing and non-performing loans as well as other real estate owned. The bank's board of directors anticipates winding down the bank's business within 36 months of the closing, and making distributions to shareholders at that time, according to a press release.
The deal will allow Towne Bank to expand into northeastern North Carolina and the Outer Banks, the company's chief executive, G. Robert Aston Jr., said in a press release.
"It fits perfectly into our strategic goal of serving those communities within the reach" of the Hampton Roads market from Williamsburg to the Outer Banks, he said.
Upon closing, Bank of Currituck would be renamed TowneBank of Currituck, and its directors will join the new bank's regional board.
