FIRST BANCORP ANNOUNCES ACQUISITION OF FIRST CAROLINA BANCSHARES CORPORATION TO EXPAND ITS SOUTH CAROLINA PRESENCE

First Bancorp (Nasdaq: FBNC) has announced its definitive merger agreement to acquire First Carolina Bancshares Corporation in a stock and cash transaction valued at $166 million. The transaction, which was revealed on July 14, 2026, will see First Carolina shareholders receive 1,967,017 shares of First Bancorp common stock and $40 million in cash. The merger is anticipated to close in the fourth quarter of 2026 or early in the first quarter of 2027, pending necessary approvals from shareholders and regulatory bodies.

First Bancorp, headquartered in Southern Pines, North Carolina, is the parent company of First Bank, a community bank established in 1935. The bank operates a network of branches across North Carolina and South Carolina, focusing on delivering tailored financial solutions supported by local expertise. With this acquisition, First Bancorp aims to enhance its presence in South Carolina and expand its market share in both Carolinas, positioning itself among the top ten banks for deposit market share based on June 30, 2025, FDIC data.

First Carolina Bancshares Corporation, based in Florence, South Carolina, is the parent company of Carolina Bank & Trust Company, which has been serving the Pee Dee region since 1936. Carolina Bank operates 14 branches across six counties and offers a full range of financial services to individuals and small to mid-sized businesses. The bank has established a strong reputation for community banking, evidenced by its impressive return on average assets of 1.60% for the twelve months ending March 31, 2026. The merger aligns with First Bancorp's strategy to leverage local decision-making and enhance customer relationships.

The strategic rationale behind this merger lies in the complementary strengths of both organizations. First Bancorp's focus on community banking and local engagement mirrors the operational ethos of Carolina Bank, making the integration of the two entities a natural fit. The combined resources are expected to provide enhanced services to customers while maintaining the trusted relationships that Carolina Bank has built over decades.

As the financial services sector continues to evolve, this merger signals a trend toward consolidation among community banks as they seek to scale operations and enhance competitive positioning. The transaction underscores the importance of local banking relationships while also highlighting the need for increased resources to meet customer demands in an increasingly complex financial landscape. The successful integration of First Carolina Bancshares into First Bancorp could serve as a model for future mergers in the community banking sector, potentially leading to further consolidation as banks strive to enhance their service offerings and operational efficiencies.