Deal reached for Harrington Bank acquisition
The High Point-based parent company of the Bank of North Carolina is set to close on the acquisition of the parent company of Chapel Hill-based Harrington Bank by the second quarter of next year, according an announcement by the companies on Wednesday.
Through the deal, BNC Bancorp will acquire the bank’s three branches in Chapel Hill, and $179 million in loans and $198.8 million in deposits.
For each share in Harrington Bank’s parent company, common shareholders will receive 0.4069 shares of common stock in BNC Bancorp, or $5.90 in cash.
The deal is still subject to certain closing conditions.
Larry T. Loeser, president and CEO of Harrington Bank, said being a part of a larger organization will help the bank comply with increased regulatory requirements and provide opportunities to incorporate technology in banking, he said.
Also, during the financial crisis, Loeser said more borrowers had difficulty repaying their obligations, and that dragged on bank earnings. According to Federal Deposit Insurance Corp. data, Harrington Bank reported a net loss of about $334,000 for the year through Sept. 30.
Harrington Bank employs 55 in Chapel Hill. There will be no workforce changes made between now and the deal’s closing, Loeser said, but bank officials will determine “how to maximize the people resources” from both organizations.