Banking

Charlotte’s Park Sterling Corp. to buy Virginia bank

Charlotte’s Park Sterling Corp. announced Thursday that it has signed an agreement to acquire Glen Allen, Va.-based First Capital Bancorp. for approximately $82.5 million.
Charlotte’s Park Sterling Corp. announced Thursday that it has signed an agreement to acquire Glen Allen, Va.-based First Capital Bancorp. for approximately $82.5 million. mhames@charlotteobserver.com

The parent company of Park Sterling Bank announced Thursday that it’s signed an agreement to acquire a Virginia lender, marking the latest expansion push by the Charlotte-based company.

Park Sterling Corp. says it will acquire Glen Allen, Va.-based First Capital Bancorp. in an approximately $82.5 million deal. The purchase is expected to close in the first quarter of next year, after regulators and First Capital's shareholders give approvals.

Park Sterling, which launched in 2006, has grown its assets and become a bigger regional lender partly by buying other banks. Most recently, it acquired Rock Hill’s Provident Community Bancshares in a deal completed last year.

Following the purchase of eight-branch First Capital, Park Sterling says it will have about $3.1 billion in assets, up from approximately $2.4 billion currently. Park Sterling ranks as the seventh-largest lender in the Charlotte region by deposits, according to federal data.

Park Sterling CEO Jim Cherry said in a statement the acquisition represents a “meaningful addition” to his company’s four-state footprint, which includes South Carolina and Georgia. Park Sterling expects to have 60 branches across the four states after the deal closes.

Cherry said the deal helps Park Sterling build out its presence in Richmond, Va., a market the lender entered last year when it placed a commercial banking team there.

Thursday’s purchase comes at a time when banks continue to seek mergers and acquisitions, arrangements they say help them spread out rising regulatory costs at a time when low interest rates constrict revenue growth.

Cherry said the purchase “increases our operating scale to drive immediate efficiencies and provides accelerated revenue growth opportunities to further strengthen financial returns to shareholders.”

Park Sterling shares fell less than 1 percent Thursday to $6.74.

Deon Roberts: 704-358-5248, @DeonERoberts

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