TROY, N.C., June 19 /PRNewswire-FirstCall/ -- First Bancorp (Nasdaq: FBNC)
announced today that First Bank, its banking subsidiary, has entered into a
purchase and assumption agreement with the Federal Deposit Insurance
Corporation (FDIC), as receiver for Cooperative Bank, Wilmington, North
Carolina, effective 6:00 pm today. The North Carolina Commissioner of Banks
issued an order providing for the closing of Cooperative Bank and appointed
the FDIC as receiver. According to the terms of the agreement, First Bank
will acquire all deposits (except certain brokered deposits) and borrowings,
and substantially all of the assets of Cooperative Bank and its subsidiary,
Lumina Mortgage. All deposits are being assumed by First Bank with no losses
to any depositor. Each of Cooperative Bank's branches will open Monday as
branches of First Bank.
"We warmly welcome the customers of Cooperative Bank as valued customers of
First Bank. Like Cooperative Bank, First Bank has provided the best in
community banking to its customers for over 70 years. Most importantly, all
customers can be confident that their deposits are safe and readily
accessible. It will be business as usual on Monday morning, and you can
expect to see the same friendly faces serving you," said Jerry Ocheltree,
President and CEO of First Bank. "First Bank is a well-capitalized and strong
bank, and we look forward to serving you for many years to come."
Over the weekend, customers of Cooperative Bank can access their money as they
always have, by writing checks, accessing online banking, or using ATM or
debit cards. Checks drawn on Cooperative Bank will continue to be processed.
Customers of both banks should continue to bank as they normally do at their
existing branches until First Bank can fully integrate the loan and deposit
records of Cooperative Bank. Depositors may withdraw their CD deposits
without penalty until maturity.
Cooperative Bank operated through twenty-one branches in North Carolina and
three branches in South Carolina. First Bank has purchased approximately $974
million in total assets, including $835 million in loans, and assumed $873
million in liabilities, including $717 million in deposits. The loans being
purchased are covered by a loss share agreement between the FDIC and First
Bank which affords First Bank significant loss protection. First Bank is
receiving a discount of $123 million on the assets and is paying a 0% deposit
premium. In the coming days, First Bancorp plans to file a Form 8-K with the
Securities and Exchange Commission that will provide more information
regarding this transaction. Janney Montgomery Scott LLC acted as financial
advisor to First Bancorp in this transaction.
First Bancorp (the "Company") is a bank holding company headquartered in Troy,
North Carolina with total assets of approximately $3.6 billion (including the
assets of Cooperative Bank acquired today). Its principal activity is the
ownership and operation of First Bank, a state-chartered community bank that
now operates 98 branches, with 83 branches operating in the central piedmont
and coastal regions of North Carolina, 10 branches in South Carolina (Cheraw,
Dillon, Florence, Latta, Jefferson, Myrtle Beach and Little River), and 5
branches in Virginia (Abingdon, Dublin, Fort Chiswell, Radford, and
Wytheville), where First Bank does business as First Bank of Virginia. First
Bank also has loan production offices in Blacksburg, Virginia and Nags Head,
North Carolina. First Bancorp's common stock is traded on the NASDAQ Global
Select Market under the symbol "FBNC."
Please visit our website at www.FirstBancorp.com.
This press release contains statements that could be deemed forward-looking
statements within the meaning of Section 21E of the Securities Exchange Act of
1934 and the Private Securities Litigation Reform Act of 1995, which
statements are inherently subject to risks and uncertainties. Forward-looking
statements are statements that include projections, predictions, expectations
or beliefs about future events or results or otherwise are not statements of
historical fact. Such statements are often characterized by the use of
qualifying words (and their derivatives) such as "expect," "believe,"
"estimate," "plan," "project," "anticipate," or other statements concerning
opinions or judgments of the Company and its management about future events.
Factors that could influence the accuracy of such forward-looking statements
include, but are not limited to, the financial success or changing strategies
of the Company's customers, the Company's level of success in integrating
acquisitions, actions of government regulators, the level of market interest
rates, and general economic conditions. For additional information about the
factors that could affect the matters discussed in this paragraph, see the
"Risk Factors" section of the Company's most recent report on Form 10-K.
SOURCE First Bancorp
Jerry L. Ocheltree, First Bancorp, +1-910-576-6171
