First Trust Bank (Charlotte, NC) (NCFT)

[56Chevy]

BNC Bancorp raises capital, buys community bank

Tue Jun 5, 2012 3:58am IST

(Reuters) - BNC Bancorp (BNCN.O), a North Carolina-based bank holding company, said it is raising $72.5 million from private equity firm Aquiline Capital Partners LLC and 19 other investors and is also buying a small commercial bank in the Charlotte area.

BNC, parent of Bank of North Carolina, which has $2.5 billion in assets, announced the deals on Monday after the end of trading. BNC stock closed at $7.40, down 41 cents, or 5.2 percent.

The investors are buying preferred stock mandatorily convertible into common stock upon shareholder approval at $7 a share, according to the company.

Aquiline, which is based in New York, is leading the investment group, which includes directors of BNC. The financing is expected to close on or about Friday.

Aquiline is making a specialty of investing in consolidation of the battered banking industry. Its investment professionals include former Wachovia bank Chief Executive Ken Thompson, a North Carolina native who also is a director of BNC.

"This capital raise represents a significant step in our strategic plan, and will provide the capital we need to continue our expansion in the key growth markets of North and South Carolina," Rick Callicutt, president of Bank of North Carolina, said in a statement.

The company also said it is paying about $35 million in stock and in cash to buy First Trust Bank (NCFT.OB), which has $436 million of assets and primarily serves small businesses and professionals in the Charlotte area.

The terms call for shareholders of First Trust to receive $7.25 a share. Two trades of 100 shares each were reported on Monday. The shares last traded at $5.90.

Bank of North Carolina said it will pick up three new branches, $228 million in loans and $374 million in deposits with the purchase.


http://in.reuters.com/article/2012/06/04/us-bncbancorp-deal-capital-idINBRE85312V20120604