Norfolk-based Bank of Hampton Roads plans to sell seven Gateway Bank branches in North Carolina with deposits totaling $195 million to East Carolina Bank, based in Engelhard, N.C.
The branches are in Preston Corners, Plymouth, Roper, Chapel Hill, Falls of Neuse, Lake Boone and Wilmington.
Under the terms of the deal, Bank of Hampton Roads plans to close the Roper branch and consolidate it with the Plymouth branch before the sale is completed.
Terms of the transaction were not disclosed. The sale is expected to be completed in the fourth quarter, subject to regulatory approval and customary closing conditions.
“With the agreement to sell these branches, we continue to make good progress on our plan to improve our operating efficiency and profitability by focusing on our strong community banking franchise in our core markets,“ John A.B. “Andy” Davies Jr., the president and chief executive officer of Hampton Roads Bankshares Inc., said in a statement. Hampton Roads Bankshares is the parent company of Bank of Hampton Roads and Shore Bank.
East Carolina Bank is a subsidiary of ECB Bancorp Inc.
The Hampton Roads Bankshares Inc. was advised by Sandler O’Neill & Partners LP on the transaction. ECB was advised by Janney Montgomery Scott LLC.
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