Banking

Yadkin Bank to acquire NewBridge Bank

Yadkin Bank CEO Scott Custer, left, poses with NewBridge Bank CEO Presley Ridgill. On Tuesday, Raleigh-based Yadkin announced plans to acquire Greensboro-based NewBridge Bank and its 42 branches for stock valued at $456 million.
Yadkin Bank CEO Scott Custer, left, poses with NewBridge Bank CEO Presley Ridgill. On Tuesday, Raleigh-based Yadkin announced plans to acquire Greensboro-based NewBridge Bank and its 42 branches for stock valued at $456 million.

Raleigh-based Yadkin Bank will expand its presence in the Charlotte metropolitan area through the acquisition it announced Tuesday of Greensboro-based NewBridge Bank.

Yadkin, which was already the largest community bank based in North Carolina, has signed an agreement to acquire NewBridge for stock valued at about $456 million. The deal gives Yadkin 42 NewBridge branches, including one in SouthPark, the only branch NewBridge had in the Charlotte region.

Yadkin, which already had 18 branches in the Charlotte metro area, plans to keep growing across its various operations in the region, CEO Scott Custer said Tuesday. Even before Tuesday’s deal, Charlotte has been headquarters for Yadkin’s homebuilder-finance and Small Business Administration-lending operations.

“We will continue to make investments in Charlotte,” Custer said. “We’ll be growing our business there, certainly not shrinking it.”

Combined, the two banks have approximately 275 employees in the Charlotte metro area, according to Yadkin.

Yadkin grew into the largest North Carolina-based community bank through last year’s purchase of Raleigh’s VantageSouth Bancshares, a deal that effectively doubled Yadkin’s assets to about $4 billion.

Its latest acquisition will give Yadkin more than 110 branches. Its assets will total $7.1 billion, and it will have $5.2 billion in deposits and $5 billion in loans, based on the two banks’ June 30 financials.

Tuesday’s deal still requires shareholder and regulatory approval. It will expand Yadkin’s footprint into the Triad, giving it a presence in all the state’s major markets. It also will boost its South Carolina presence, where it will add offices in Greenville, Spartanburg and Charleston.

When the deal closes, which is expected to happen early in the second quarter of 2016, Yadkin shareholders will own about 61.3 percent of the stock in Yadkin Financial, the corporate parent of Yadkin Bank, and NewBridge shareholders will own the remaining 38.7 percent.

The top management of Yadkin will remain the same after the deal closes, and the bank will maintain its Raleigh headquarters. NewBridge CEO Pressley Ridgill will become a consultant to the bank.

NewBridge shareholders will receive one-half share of Yadkin’s common stock for each share of stock they own, which values the deal at $11.40 per share based on Yadkin’s Monday closing price.

Yadkin’s board of directors will consist of 10 Yadkin directors and five NewBridge directors. Yadkin’s chairman, Joseph Towell, will remain chairman of the board.

David Ranii: 919-829-4877, @dranii

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