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First Bancorp, the parent company of First Bank, a $4.2 billion community bank headquartered in Southern Pines, NC, has signed an agreement to acquire ASB Bancorp, Inc. (ASBB), pursuant to which ASBB will merge with and into First Bancorp, and Asheville Savings Bank (ASB) will merge with and into First Bank.
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This transaction is expected to close during in the fourth quarter of 2017, subject to certain conditions, including the approval of ASBB shareholders and customary regulatory approvals. The operations of Asheville Savings Bank are expected to be fully integrated into First Bank shortly after the transaction close date. Asheville Savings Bank will be taking the First Bank name.
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In addition to offering compelling financial terms, First Bank and the combined company offer an enhanced footprint, a broader range of product and service offerings for customers, and increased growth opportunities for employees. First Bank also shares our commitment to the local community and values the great work we continue to do in the areas where we operate. We can assure you that we fully evaluated this combination with First Bank and believe that it is the best course forward for ASBB customers, shareholders, and employees.
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First Bank shares our culture, values and commitment to community, meaning that many of the qualities our customers have come to know us for will be preserved under new ownership.
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First Bank was founded as the Bank of Montgomery in 1935 in Troy, NC, and for more than 80 years they have been helping their clients in the Carolinas realize their dreams. First Bank is committed to the local communities that they serve and their mission is “To be the best community bank in every community we serve and through every delivery channel we offer.” First Bank does this by providing the best-in-class financial products and tools and by delivering superior service at the best value for their clients.
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With the addition of ASB, First Bank will have over 100 branch locations in North Carolina and South Carolina and will be the largest independent North Carolina community bank. You can learn more about First Bank at localfirstbank.com.
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First Bank shares our commitment to providing the best possible customer experience.
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Like Asheville Savings Bank, First Bank has an 80+ year history of supporting its local communities in the Carolinas.
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First Bank provides best-in class financial products and resources to help meet the needs of our growing customer base.
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First Bank understands the communities that we serve in Western North Carolina and has been in the Asheville market since 2011.
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This opportunity came about because of our team’s success building an outstanding franchise, and it is a testament to the hard work of every ASB employee. With First Bank, employees will be provided greater opportunities for growth.
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For now, it will be business as usual at Asheville Savings Bank.
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As part of the combined company, team members will be able to better serve retail and commercial customers with an expanded portfolio of best-in-class products and services.
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The combined company will maintain its corporate headquarters in Southern Pines, NC.
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ASB CEO Suzanne DeFerie will join the Board of Directors of the combined company and will remain at the combined bank in a regional leadership role.
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While both First Bank and ASB have similar benefit packages, there are a few benefit enhancements that you will experience as a First Bank employee:
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Increased PTO Time
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Lower Health Insurance Premiums for most tiers and a low cost HSA option
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Employee Stock Purchase Plan*
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Paid Maternity and Paternity Leave
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Earlier Participation in the Company Sponsored 401(k) Plan
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At closing, shares of ASBB stock in the ASB ESOP will be exchanged for merger consideration. The proceeds from the exchange of the unallocated ASBB shares will be first used to repay the ESOP debt and the remaining proceeds will be allocated to employee participants. The ESOP will be terminated and participants will receive distribution of their account balances in accordance with the terms of the ASB ESOP.
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While First Bank has a few offices already in our market, they are excited to acquire the ASB brand and branch network and the breadth of our market coverage. Current day-to-day operations will not be affected. Information regarding specific banking centers will be available closer to the closing date.
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No definitive decisions have been made about staffing at this time. First Bank believes in having local leadership in place making decisions that meet the needs in each market. The goal is to retain as many employees as possible, and we anticipate the impact on our banking centers to be minimal.
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Employees whose jobs are impacted will be given consideration for opportunities to move to other available positions within the combined company and/or transition support roles. There also may be potential new career opportunities within the combined company for ASB employees.
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Closing date is when Asheville Savings Bank will actually be merged into First Bank.
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Conversion date is when account records convert over to First Bank systems. The system conversion is scheduled for the end of first quarter 2018. This is also the time when Asheville Savings Bank will officially change over to the First Bank brand.
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While no definitive decisions have been made about staffing at this time, below are details on severance packages and employee benefits:
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Severance Packages – In the event that certain positions are eliminated, severance packages will be made available. We will communicate with you as soon as possible once decisions relating to staffing have been made and what will be included in those severance packages.
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Benefits - After the closing transaction date, all of your ASB benefits will be transitioned to First Bank benefits. We will communicate with you as soon as possible once we have all of the details.
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Specific information on the terms of the transaction will be provided to all ASBB shareholders in a separate communication.
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During Q3 2017 – There will be a vote by all ASBB shareholders to approve the transaction.
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During Q4 2017 – The transaction will officially close, and Asheville Savings Bank will legally merge into First Bank.
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During Q1 2018 – The conversion to the First Bank system will take place and all banking centers will reopen as First Bank on the next business day.
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Immediately following the publicly issued press release announcing this news, ASB relationship managers will begin contacting key customers. We also will send every customer an email (whose email address that we have on file) as well as a letter notifying them of this transaction.
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Asheville Savings Bank and First Bank are both committed to providing transparent communications to customers as details are worked out. We will keep you informed regarding all planned communications.
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For now, it is business as usual at ASB.
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If customers ask questions that you are unable to answer, please take down the customer’s contact information and specific question and share this information with Joe Ward and Vikki Bailey who will respond to these customers directly.
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Please refer all media inquiries to:
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Please refer all investor inquiries to:
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