BLUEFIELD, Va. — First Community Bank will expand its branch network in Southwestern Virginia through a trade of branches with First Bank of Southern Pines, North Carolina. First Community Bank will acquire First Bank’s seven branches in Abingdon, Wytheville, Fort Chiswell, Blacksburg, Christiansburg, Radford, and Salem, Virginia. First Bank will simultaneously acquire First Community Bank’s six branches in Winston-Salem, Mooresville, and Huntersville, North Carolina. It is anticipated that the purchase of the branches will close in the third quarter of this year following approval by regulators and satisfaction of customary closing conditions.
Through this transaction, First Community Bank is acquiring about $150 million in deposits and First Bank is acquiring about $130 million in deposits. The companies expect to also exchange up to $175 million in loans associated with the branch networks. As structured, the transaction will have minimal impact on First Community Bank’s balance sheet, but will meaningfully increase its market share standing within these markets allowing for increased efficiency and enhanced customer service.
“Through this transaction, both banks achieve further concentration of our banking operations in our respective core operating markets. First Bank and First Community share many strategic and operating goals and philosophies. This branch trade truly presents a ‘win-win’ for both institutions and their respective customers and employees. We have developed the utmost respect for the management and employees of First Bank and look forward to working with them to conclude this transaction,” remarked William P. Stafford, II, chairman and chief executive officer of First Community Bancshares, Inc.
“We enthusiastically welcome these branches and customers to First Community Bank,” said Gary Mills, chief executive officer of First Community Bank.
“This transaction is strategically important to us and complements our prior investment in Southwestern Virginia and Western North Carolina. The acquisition strengthens our overall Company and allows us to further support and enhance the metro market team we have built in Richmond, and positions us to focus additional efforts on the entire franchise,” Mills continued.
First Community Bank is a wholly-owned subsidiary of First Community Bancshares, Inc., (NASDAQ:FCBC) (www.fcbinc.com) which is headquartered in Bluefield, Virginia.