Tennessee-based Pinnacle Financial Partners, the parent of Pinnacle Bank, has agreed to acquire North Carolina-based BNC Bancorp, the parent of Bank of North Carolina, in an all-stock deal valued at $1.9bn.
Under the arrangement, BNC will merge with and into Pinnacle and Bank of North Carolina with and into Pinnacle Bank.
The combined entity will have $20bn in assets, $14bn in loans and $15bn in deposits, and a four-state presence concentrated in 12 of the largest urban markets in the Southeast.
Pinnacle will operate the Carolinas and Virginia region out of BNC's existing High Point, North Carolina headquarters.
BNC president and CEO Richard Rick Callicutt II will take over as chairman of the Carolinas and Virginia region post completion of the deal. He will join the board of Pinnacle along with three other BNC directors. BNC senior executive vice president and CFO David Spencer will be appointed as executive vice president.
Under the terms of the deal, shareholders of BNC will receive 0.5235 shares of Pinnacle common stock for every BNC share.
The deal has already secured the nod from the board of directors of both companies. It is expected to be completed in the third quarter of 2017, subject to regulatory and shareholders’ approvals.
Pinnacle president and CEO M. Terry Turner said: “BNC represents the single best platform to expand our presence in urban, high-growth metropolitan markets. This merger is consistent with Pinnacle’s strategy to become the dominant bank in southeastern commercial banking. BNC’s success can be attributed to its experienced financial services professionals and the culture they have created.”