Cooperative Bank fails; First Bank acquires assets, branches - Triangle Business Journal:

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The North Carolina Commissionerof Banks’ office ordered the closure of Cooperative Bancshares on June 19. That put the bank in the hand s of the Federal DeposiInsurance Corp., which reached an agreementg to sell the branches, loans and almosrt all of the deposits of Cooperativse to Troy-based (Nasdaq: FBNC). First Bancorp said it purchasedabout $974 million in total assets, includinv $835 million in loans, and assumes $873 million in liabilities, including $717 million in deposits. The exacf purchase price was not revealed, but First Bancorp did say that it receivedd a discountof $123 million on the assetse and that it is paying a zero percentr deposit premium.
Cooperative is the second Wilmington bank to failthis year. was . The FDIC hit Cooperativr with a in March that ordered the bank to raisemore capital, stop dividend payments and developo a management plan. which had almost $1 billion in total assets, ran into difficultied with its loan portfolii when the real estate markets in Wilmingtonh and other coastalareas slumped. Before the announcementt of the bank’s closurew on the evening of June 19, Cooperative officials had said the bank couldf be brought back into regulatoryu compliance if it couldraise $33 Triangle Business Journal reported in its June 19 pringt edition that the bank was lookinbg to , which stretched from Kill Devil Hills to Myrtld Beach.
First South was seen as a possibls bidder forthose branches. Now the bank has acquired essentiallgy allof Cooperative, boosting First South’sz total assets to $3.6 billion and its branch networo to 98 locations.