Deal reached for acquiring Harrington Bank
Chapel Hill-based Harrington Bank is set to have new ownership by the second quarter of next year.
In a release Wednesday, it was announced that the High Point-based parent company of the Bank of North Carolina will acquire the parent company of Harrington Bank.
Through the deal reached by the companies, BNC Bancorp will acquire the bank’s three branches in Chapel Hill, along with the bank’s $179 million in loans and $198.8 million in deposits.
Common shareholders of Harrington Bank’s parent company will receive 0.4069 shares of common stock in BNC Bancorp, or $5.90 in cash, in exchange for each share of common stock in Harrington’s parent company.
The deal is still subject to certain closing conditions, but is expected to close in the second quarter of next year.
Larry T. Loeser, president and CEO of Harrington Bank, said the deal is positive for the bank’s customers, employees and shareholders.
There are more regulations that the bank must comply with as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act, he said, and increased size will help the bank deal with those regulations.
He said there also are more opportunities to incorporate technology into banking, and size can help with that, too.
Loeser said that during the financial crisis, more borrowers had difficulty repaying their obligations. That dragged on earnings for the industry, he said, as well as for Harrington Bank.
According to Federal Deposit Insurance Corp. data, Harrington Bank reported a net loss of approximately $334,000 for the year through Sept. 30.
“We were fortunate to draw the interest of Bank of North Carolina, with not only a well-run bank, but a strong partner for us,” Loeser said. “Our customers will have more product options. They’ll have more banking locations, and these are just two of the things that make this an attractive deal for us.”
Harrington Bank has 55 employees in Chapel Hill. There will be no changes in the bank’s workforce between now and the closing of the deal, Loeser said. But he said bank officials will determine between now and then “how to maximize the people resources” from both organizations.