First South Bancorp (FSBK 15.97, +1.37) has spiked 9.4% after agreeing to be acquired by Carolina Financial Corp (CARO 31.37, -1.12) for $162 million in stock.
Shareholders of First South Bancorp will receive 0.52 shares of Carolina Financial common stock in exchange for each share of First South's common stock.
The acquisition of First South Bancorp will expand Carolina Financial's presence in North Carolina and will expand the company's reach to Raleigh and Durham, which are viewed as two of the fastest growing markets in the Southeast.
Once the deal is complete, the combined company will have $3.20 billion in assets, $2.20 billion in loans, and $2.50 billion in deposits. The transaction will strengthen Carolina Financial's position as one of the largest community banks based in the two Carolinas.
First South Bancorp President and CEO Bruce Elder, who will be named President of North Carolina Banking for Carolina Financial's bank subsidiary—CresCom Bank—said, "We are excited about partnering with a high-performing company like Carolina Financial. First South shareholders and customers will be rewarded as the combination of these two banks will provide superior financial performance along with an exceptional customer experience. We will leverage the new resources and products available to us through CresCom Bank to attract new customers and expand our existing relationships."