Park Sterling to acquire First Capital in $82.5 million deal
Charlotte, N.C.-based Park Sterling Corp. plans to acquire the holding company of First Capital Bank in a deal valued at $82.5 million.
Glen Allen-based First Capital operates eight branches in the Richmond area.
The combined bank holding company will have about $3.1 billion in total assets, $2.2 billion in total loans, $2.4 billion in total deposits and 60 offices in the Carolinas, Virginia and North Georgia.
The Richmond area will become Park Sterling’s second-largest deposit market after the Charlotte metro area. Its Richmond branches will expand from two to 10.
The agreement has been approved by the board of directors of each company. The transaction is expected to close in the first quarter of 2016.
Under the terms of the merger agreement, First Capital common shareholders will receive either $5.54 in cash or 0.7748 Park Sterling shares for each First Capital share they hold.
Two independent, Richmond-based First Capital directors will join the Park Sterling board. One of them will be Grant Grayson, a partner in LeClairRyan law firm, who is chairman of First Capital.