Yadkin Financial in Raleigh, N.C., has agreed to buy NewBridge Bancorp in Greensboro, N.C.
The $4.3 billion-asset Yadkin said in a press release Tuesday that it will pay $456 million in stock, or $11.40 a share, for the $2.8 billion-asset NewBridge. The deal is expected to close in the second quarter
Yadkin will have $7.1 billion in assets, $5.2 billion in deposits and $5 billion in loans when it completes the acquisition.
The merger "strengthens Yadkin's leading position as the largest community bank in North Carolina,” Scott Custer, Yadkin's president and chief executive, said in the release. “Our combined statewide presence, coupled with our shared commitment to providing best-in-class service, uniquely positions our franchise to grow as the premier community bank in the state. The merger will also increase our presence in South Carolina with the addition of offices in the Greenville-Spartanburg and Charleston markets."
Yadkin said it expects the deal to produce 10% earnings accretion after cutting about 34% of NewBridge's expenses. Yadkin also said the cost cutting will include the closure of about 10% of the combined company's branches.
Yadkin said it also expects to incur about $29 million in pretax merger-related expenses and that it should take less than three years to earn back any dilution to tangible book value.
Pressley Ridgill, NewBridge’s chief executive, will become a consultant to Yadkin.
Keefe, Bruyette & Woods and Skadden, Arps, Slate, Meagher & Flom advised Yadkin. Sandler O'Neill; Brooks, Pierce, McLendon, Humphrey & Leonard; and Wachtell, Lipton, Rosen & Katz advised NewBridge.