BNC Bancorp has signed a definitive agreement to acquire Virginia-based Valley Financial Corporation.
As part of the deal, BNC will purchase the entire common stock of Valley in a stock transaction worth about $101.3m, based on the closing price of BNC common stock on November 14.
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Shareholders of Valley Financial will get a fixed price of $20.50 for each share of Valley common stock.
Rick Callicutt, president and CEOfficer of BNC, said, "This partnership will allow us to enter the Commonwealth of Virginia with a sizable presence in the Roanoke MSA and a top 4 deposit market share. We are most excited about Ellis Gutshall and his team joining BNC to continue to expand the most formidable community bank in the Roanoke Valley. Our combined companies will be well positioned for further expansion in Virginia. The similar culture and core values of Valley and BNC will allow us to accelerate the integration, deepen existing customer relationships, and focus on growth in Southwest Virginia."
Valley recorded about $857m in assets, $607m in loans, $682m in deposits and $57m in tangible common equity as of September 30 this year.
Following the closure of the transaction, BNC is projected to comprise nearly $5bn in assets, $3.6bn in loans, and $4bn in deposits.
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By GlobalDataThe transaction is yet to get the consent of regulatory authorities, shareholders of Valley and BNC, and is subject to other customary conditions. The acquisition is scheduled to close in the second quarter of next year.
