BNC to expand in Triangle by buying KeySource Commercial Bank [Winston-Salem Journal, N.C.]

Dec. 21--BNC Bancorp said Wednesday it is doubling its Triangle presence to two branches by buying KeySource Commercial Bank of Durham in a $12.2 million stock deal.

KeySource is the wholly owned subsidiary of KeySource Financial Inc. The deal, which requires regulatory and shareholder approval, is expected to close in the second quarter.

KeySource had $206 million in total assets and $166 million in deposits on Sept. 30. Its branch at 280 S. Mangum St. in downtown Durham opened in March 2007.

BNC, the parent company of Bank of North Carolina, also has a branch in Raleigh.

Swope Montgomery, president and chief executive of BNC, said the bank is gaining a solid management team in the KeySource deal. "The deal is slightly accretive to our capital and is accretive to our earnings per share in the first year," Montgomery said.

Montgomery said the deal for KeySource was similar to its $9.75 million cash purchase of the stock of the Regent Bank franchise in Greenville, S.C. That deal, announced in September, is expected to close in the first quarter.

In October, BNC took over a failed Blue Ridge Savings Bank Inc. of Asheville and its $161 million in assets in a deal brokered by the Federal Deposit Insurance Corp. BNC said Nov. 23 it was closing four of the 10 Blue Ridge branches to enable the bank to "more efficiently deploy" its commercial and retail products and services in its new western N.C. marketplace.

With the KeySource branch, BNC will have 25 branches in 19 N.C. cities and six branches in four S.C. cities. It also will have about $2.6 billion in total assets, making it one of the largest community banks in the Triad and North Carolina.

Its N.C. banking network features branches in Archdale, Asheville, Boone, Brevard, Charlotte (2), Concord, Greensboro (2), Harrisburg, Hendersonville, High Point (2), Kernersville, Lexington (2), Maggie Valley, Mooresville (2), Raleigh, Salisbury, Thomasville (2) and Winston-Salem.

Its S.C. banking network features branches in Hilton Head Island (2), Myrtle Beach (2), North Myrtle Beach, Pawleys Island. It plans to convert a Regent Bank branch in Greenville in the first quarter.

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