First Bancorp Deepens South Carolina Footprint with $166M Acquisition of First Carolina Bancshares

summarizeSummary

First Bancorp announced a definitive agreement to acquire First Carolina Bancshares for $166 million in stock and cash, adding $831 million in assets and 14 branches in South Carolina. The deal is expected to close in late 2026 or early 2027 and be accretive to earnings.

check_boxKey Events · M&A and Partnerships · FBNC

• Acquisition of First Carolina Bancshares

  First Bancorp entered into a definitive merger agreement to acquire First Carolina Bancshares Corporation for total consideration of approximately $166 million, consisting of 1,967,017 shares of FBNC common stock and $40 million in cash.

• Transaction Economics

  The deal values First Carolina at 1.47x tangible common equity and 11.5x 2027E earnings. It is expected to be ~3% accretive to EPS, with ~1% TBV dilution and a 1.7-year earnback period.

• Strategic Rationale

  The acquisition deepens First Bancorp's South Carolina franchise, increasing its deposit base in the state by over 50% and doubling its branch footprint. Carolina Bank brings a strong deposit franchise with a 1.47% cost of deposits and a 1.60% ROAA.

• Deal Protections and Approvals

  The merger agreement includes a $6.4 million termination fee payable by First Carolina under certain circumstances. Directors and certain shareholders have signed support agreements to vote 40% of First Carolina shares in favor. Closing is subject to regulatory and First Carolina shareholder approvals.

auto_awesomeAnalysis · FBNC · Finance

In a move that meaningfully expands its South Carolina presence, First Bancorp is acquiring First Carolina Bancshares for $166 million in stock and cash. The target brings $831 million in assets and 14 branches, anchored by Carolina Bank's compelling 1.60% ROAA and low-cost deposit base. The transaction is projected to be low single-digit accretive to EPS, with minimal tangible book value dilution and a rapid earnback. Deal protections include a $6.4 million termination fee and support agreements that lock up 40% of the target's vote. Strategically, this acquisition enhances scale and market position in a growing region.