First Community Bankshares to acquire North Carolina-based Surrey Bancorp

Virginia-based First Community Bankshares has agreed to acquire Surrey Bancorp, a bank holding company in North Carolina and its banking subsidiary, Surrey Bank & Trust in a deal worth around $113.2 million.

First Community Bankshares is the bank holding company for First Community Bank, which has 48 branches in Virginia, North Carolina, West Virginia, and Tennessee.

Surrey Bank & Trust, on the other hand, has seven branch banking locations across northwestern North Carolina and southwestern Virginia.

Surrey Bancorp and Surrey Bank & Trust will be merged with and into First Community Bankshares and First Community Bank, respectively.

Post-closing, First Community Bankshares is anticipated to have consolidated total assets of more than $3.6 billion, apart from branch points in four states.

Based on the financial metrics, as of 30 September 2022, Surrey Bank & Trust had total assets of around $500 million.

William P Stafford, II — First Community Chairman and CEO said: “First Community’s commercial loan customers will benefit from Surrey’s government guarantee lending expertise, and Surrey’s customers will benefit from the additional scale, increased lending limits, and enhanced product and technology offerings of First Community.

“Shareholders, customers and employees of both banks will benefit greatly from future synergies and efficiencies.”

Prior to the merger, each share of Surrey Bancorp common and Class A common stock outstanding will be converted into the right to be issued 0.7159 shares of the common stock of First Community. The exchange ratio translates to $26.95 per share of Surrey Bancorp common stock.

Edward C Ashby III — Surrey Bank & Trust CEO and Director said: “When considering a long-term partner, we wanted a bank that shared our values of providing the highest level of banking services to our community, valued its employees and performed at a level worthy of its shareholders.

“In First Community, we found all those qualities and are confident that our combined franchise will continue to generate value for all our stakeholders.”

Performance Trust Capital Partners and Raymond James & Associates acted as financial advisors to First Community Bankshares and Surrey Bank & Trust, respectively.

Anticipated to be completed in Q2 2023, the transaction is subject to the approval of Surrey Bank & Trust’s shareholders and regulatory approvals.