Two North Carolina-based banks with locations in the Wilmington market announced a definitive merger agreement Tuesday.

First Bancorp, the parent of First Bank, will acquire Select Bancorp, the parent of Select Bank and Trust Co., in an all-stock transaction with a total current value of  $314.3 million, according to a news release.

That comes out to slightly over $18 per share, based on First Bancorp’s stock price at the end of May. Select shareholders will receive 0.408 shares of First Bancorp's common stock for each share of Select common stock.

The merger agreement has been unanimously approved by the directors of each company, the release further stated.
 
Southern Pines-based First Bank operates seven offices in the Wilmington market, and holds the sixth-largest market share here, based on the amount of in-market deposits.

Select Bank, headquartered in Dunn, maintains one office in Wilmington and one in Leland and has the 14th-largest market share.

At the end of the first quarter of 2021, Select reported assets of $1.8 billion, loans of $1.3 billion, and deposits of $1.6 billion. First Bank reported total assets of $7.7 billion, net loans of about $4.6 billion and deposits of about $6.7 billion at the same time.
 
The geographic footprint of both banks is very similar, with branches concentrated in the metro areas of North Carolina and a few locations in adjacent South Carolina and Virginia. The acquisition of Select Bank, according to the release, “complements First Bank's existing footprint and provides entry into several new markets.”
 
It’s too early in the merger process to provide many details, Brad Mickle, First Bank’s regional president of its Eastern North Carolina Region, said in an email Wednesday, but he did confirm that the transaction is expected to close in the fourth quarter of this year, subject to shareholder approval and regulatory approval.
 
“We are very excited to welcome Select Bank and Trust clients and associates to the First Bank Family,” he wrote in the email. “It is still too early to talk about branches and staffing at this point, but the acquisition does increase our market presence and continues to build on Our Promise to Service Excellence.”

This merger announcement comes on the heels of a similar announcement late last week that Greenville, South Carolina-based United Community Banks plans to acquire Aquesta Bank, which has one Wilmington branch in addition to its other locations in the greater Charlotte area.