First Citizens Bank & Trust Company (First Citizens Bank) has signed a definitive merger agreement to acquire Spartanburg-based First South Bancorp for $37.5m.
Under the deal, First Citizens Bank will pay a cash consideration of $1.15 per share to First South Bancorp shareholders for each share of outstanding common stock.
Commenting on the deal, First Citizens chairman and CEO Frank B. Holding Jr said: It’s an excellent opportunity to enhance our commitment to the people and businesses of South Carolina and to continue to expand in key markets — including the vibrant Upstate area.
“First Citizens Bank has an extensive and proud history in the state, and we look forward to serving our new customers pending completion of this merger.”
First South Bancorp acquisition
First South Bancorp wholly owned subsidiary First South Bank has four branches in South Carolina. Once the deal is completed, the branches will migrate into First-Citizens Bank.
As of 30 September 2018, First South Bancorp had $237m in consolidated assets, $195m in deposits and $173m in gross loans.
First South Bancorp vice-chairman, president and CEO Barry L. Slider said: “The proposed merger will allow us to continue to give a highly personalised banking experience to our clients, while providing them with an enhanced set of products and services in the months to come.”
With more than $5bn assets, First Citizens Bank operates more than 550 locations across 19 states.
Last year, the company announced or completed four community bank acquisitions.
The First South Bancorp acquisition is expected to close as soon as the second quarter of this year, subject to regulatory approvals.