Waccamaw Bankshares (fka WBNK)

[56Chevy]

Mergers and Acquisitions

First Bank Agrees to Purchase Eleven Branches from Waccamaw Bank

October 24, 2011 5:48 PM EDT

First Bancorp (NASDAQ: FBNC), the parent company of First Bank, and Waccamaw Bankshares, Inc. (NASDAQ: WBNK), the parent company of Waccamaw Bank, Whiteville, North Carolina, jointly announce today that First Bank has entered into a definitive agreement to purchase eleven coastal branches from Waccamaw. The terms of the agreement provide for First Bank to acquire all the premises and equipment at the branches, all deposits (approximately $180 million), and selected performing loans (approximately $98 million). The deposit premium varies by account type, with the blended premium estimated at 1.5% of total deposits. The agreement calls for the branch facilities to be purchased at book value and the loans to be purchased at par. The transaction is subject to regulatory approval and is expected to be completed during the first quarter of 2012.

The eleven branches to be purchased under the agreement comprise all of the Waccamaw branches located in Brunswick and New Hanover Counties in North Carolina and Horry County in South Carolina. The Brunswick County branches are located in Southport (2), Shallotte (2), Ocean Isle Beach, Holden Beach, and Oak Island. The New Hanover County branch is located in Wilmington, and the Horry County branches are located in Conway (2) and Little River.

http://www.streetinsider.com/Mergers+and+Acquisitions/First+Bank+%28FBNC%29+Announces+Plans+to+Buy+11+Branches+from+Waccamaw+Bankshares+%28WBNK%29/6878404.html

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Not a good sign...the fact that FBNC is buying the cream of the crop (in the way of performing assets) from Waccamaw and leaving them with the crap of the crop (in the way of NPA loans) doesn't bode well for WBNK.