Transaction Marks Centura's Entry into the South Carolina Market
ROCKY MOUNT, N.C., Jan. 2 /PRNewswire/ -- Centura Banks Inc. (NYSE: CBC),
as part of its long-term strategy to grow and expand into attractive new
markets, announced today it has agreed to acquire Pee Dee State Bank,
headquartered in Timmonsville, S.C., for stock valued at $40.0 million.
The closing is expected during the first quarter of 1998. Founded in
1932, closely held Pee Dee State Bank has assets of $141 million with six
locations in South Carolina: three in Florence and one each in Timmonsville,
Dillon and Sumter. The purchase marks Rocky Mount, N.C.-based Centura's
entrance into the South Carolina market and extends its presence along the
Interstate 95 corridor.
"This acquisition is consistent with our strategy of expanding into new,
particularly contiguous, markets, such as our move into the Tidewater area of
Virginia last year," said Cecil W. Sewell, Centura chairman and chief
executive officer. "Located along the southern portion of one of the busiest
interstates on the East Coast, Pee Dee is a natural extension of our North
Carolina franchise."
The transaction is projected to be EPS accretive in the first year. The
acquisition price is 2.96 times Pee Dee's book value and 21.6 times Pee Dee's
estimated 1997 earnings.
"We're extremely pleased to become affiliated with this rapidly growing
and quality operation," said J.B. "Banks" Scarborough, chairman of Pee Dee
State Bank. "Centura has demonstrated tremendous initiative for expanding its
markets and maintains a reputation for excellent service. Our shareholders
will benefit from Centura's outstanding stock performance, while our customers
will have access to increased locations, a broad array of financial product
offerings and alternative banking solutions of one of North Carolina's
strongest financial institutions."
With assets of $7.1 billion, Centura provides a complete line of banking,
investment, leasing, insurance and trust services to individuals and
businesses throughout North Carolina and the Hampton Roads region of Virginia.
Services are provided through 192 financial service centers, including 20
full-service locations in Hannaford supermarkets; more than 265 ATMs at
financial centers and retail outlets; the Centura Highway; Centura's Internet
site; and through Quicken(R), Quickbooks(R), Microsoft(R) Money and
BankNOW(TM), the leading online money management software package. Additional
information about Centura is available on its website at http://www.centura.com.
SOURCE Centura Banks Inc.
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Related links:
http://www.centura.com
CONTACT:
Steven Goldstein, Centura Banks Inc.,
919-977-8356
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext.
870954
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