HIGH POINT, N.C., Sept. 14, 2012 /PRNewswire/ -- BNC Bancorp (Nasdaq: BNCN) ("BNC") today closed its acquisition of KeySource Financial, Inc. ("KeySource"), thereby expanding and enhancing the BNC franchise in the attractive Raleigh-Durham market.
BNC previously announced its plan to acquire all the capital stock of KeySource on December 21, 2011. KeySource currently has assets of $183 million, loans of $140 million and more than $152 million in deposits. KeySource's branch office in Durham, North Carolina will open for business on Monday morning, September 17, as Bank of North Carolina.
Swope Montgomery, President and CEO of BNC, commented: "We are extremely pleased to welcome KeySource customers, shareholders and employees to the Bank of North Carolina family. The completion of this strategic transaction is consistent with our long-term plan to partner with quality organizations, enhance our presence in desirable markets and provide our diverse financial product suite to new customers."Don Draughon, former Chief Executive Officer of KeySource, commented: "We could not have asked for a better partner than BNC, an organization that truly understands the importance of community banking. Through this merger, we believe we have enhanced both the banking experience for our customers and upside potential for our shareholders." "The completion of this merger is a product of a lot of effort and great teamwork between the BNC and KeySource organizations," said Rick Callicutt, President of Bank of North Carolina. He continued, "We are excited to work closely with Don and his talented team of bankers to effectively deliver the BNC platform to new and existing customers throughout the Triangle." The 100% stock consideration, with the exchange ratio set at one share of BNC stock for every outstanding share of KeySource, is valued at approximately $13.7 million based on BNC's closing share price of $7.60, as listed on the Nasdaq stock exchange on September 13th. BNC Bancorp and its subsidiary, Bank of North Carolina, were advised in the transaction by Keefe, Bruyette & Woods as financial advisor and Womble Carlyle Sandridge & Rice, LLP as legal advisor. KeySource Financial was advised by Banks Street Partners, LLC, as financial advisor, and Gaeta & Eveson, P.A., as legal advisor. Carson Medlin, a division of Monroe Securities Inc., provided a fairness opinion to the KeySource Board of Directors. Forward Looking Statements