West Town Bancorp in Raleigh, N.C., has agreed to buy Sound Banking Co. in Morehead City, N.C.
The $280 million-asset West Town said in a press release Friday that it will pay $24.6 million in cash and stock for the $185 million-asset Sound. The deal is expected to close in the second or third quarter.
West Town also plans to raise $17.5 million by selling about 454,000 shares of common stock and about 31,000 shares of preferred stock to institutional and other accredited investors. Some of the proceeds will be used to pay for the acquisition.
Five of Sound's directors are expected to join West Town’s board.
"The combined bank offers a unique and highly attractive community bank franchise in contiguous markets in eastern North Carolina that will expand branch access for the bank's customers,” Eric Bergevin, West Town’s president and CEO, said in the release.
West Town was advised by FIG Partners and Wyrick Robbins Yates & Ponton. Sound was advised by Raymond James & Associates and Ward and Smith. Performance Trust Capital Partners provided a fairness opinion.