TowneBank to buy N.C. bank

Published 10:43 pm Friday, July 16, 2010

Officials at Hampton Roads-based TowneBank announced Friday that they had reached an agreement to purchase the assets of The Bank of Currituck.

The deal would include all of the Moyock, N.C., bank’s deposit accounts, most of its loan portfolio and six banking offices in northeastern North Carolina, including three on the Outer Banks.

The transaction is expected to provide TowneBank with approximately $173 million in assets, including about $96 million in loans, and about $173 million in deposit accounts.

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In addition to its assumption of the deposit accounts and certain other liabilities, TowneBank has agreed to pay The Bank of Currituck $10 million in cash, subject to certain adjustments.

“Having The Bank of Currituck join our TowneBank family is a unique opportunity for our bank to expand our special style of hometown banking into Northeastern North Carolina and the Outer Banks,” said G. Robert Aston Jr., chairman and chief executive officer for TowneBank.

“It fits perfectly into our strategic goal of serving those communities within the reach of the Hampton Roads media market stretching from Williamsburg to the Outer Banks. The Bank of Currituck has a great legacy as a hometown bank, having served its community since 1920. We look forward to welcoming the directors, employees and customers to our Towne family.”

The transaction is expected to close this fall. The board of The Bank of Currituck anticipates winding up the bank’s business during the 36 months the transaction closes and making distributions to its shareholders at that time. Officials anticipate Bank of Currituck shareholders would receive a payment of $100 per share for the transaction.

Once the transaction closes, TowneBank of Currituck would be created as a new member of TowneBank’s Hometown Banking Group. The current directors of The Bank of Currituck will join its regional board.

“The management and directors of the bank believe that we have found the best

solution to allow the Bank to continue to provide its high level of community banking services

in these difficult times,” said Tommy Moore, former President and CEO and a current director of The Bank of Currituck. “TowneBank has the same core principles we do and will serve our customers and our communities in a manner that will make us all proud.”