SUFFOLK -- TowneBank is buyingThe Bank of Currituck and its six banking offices in northeastern North Carolina.
The deal is expected to provide TowneBank with approximately $173 million in assets, including approximately $96 million in performing loans and about $173 million in deposit accounts, officials said Friday.
In addition to its assumption of the deposit accounts and certain other liabilities, TowneBank has agreed to pay The Bank of Currituck $10 million in cash, subject to certain adjustments.
The transaction is expected to close this fall once approved.
Officials say once the deal is completed, the Bank of Currituck will cease operation as a commercial bank and will manage its remaining assets, to include certain performing and non-performing loans as well as all other real estate owned.
The Board of The Bank of Currituck anticipates the winding up of the Bank's business over the 36 months following the closing of the transaction and making distributions to its shareholders at that time.
'Having The Bank of Currituck join our TowneBank family is a unique opportunity for our bank to expand our special style of hometown banking into Northeastern North Carolina and the Outer Banks,' stated G. Robert Aston, Jr., Chairman and Chief Executive Officer. 'It fits perfectly into our strategic goal of serving those communities within the reach of the Hampton Roads media market stretching from Williamsburg to the Outer Banks. The Bank of Currituck has a great legacy as a hometown bank having served its community since 1920. We look forward to welcoming the directors, employees and customers to our Towne family.'
TowneBank of Currituck will be created as a new member of TowneBank's Hometown Banking Group. The current directors of The Bank of Currituck will join its regional board.
TowneBank operates 18 banking offices in Chesapeake, Hampton, Portsmouth, Newport News, Virginia Beach, Norfolk, Williamsburg and York County.