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BRIEF-TowneBank to buy Paragon Commercial Corp and Paragon Commercial Bank
April 27, 2017 / 12:14 PM / 5 months ago

BRIEF-TowneBank to buy Paragon Commercial Corp and Paragon Commercial Bank

April 27 (Reuters) - TowneBank:

* Towne Bank expands north Carolina presence through the acquisition of Paragon Commercial Corporation and Paragon Commercial Bank

* Towne Bank - shareholders of paragon to get fixed exchange ratio of 1.7250 shares of townebank common stock for each outstanding share of paragon stock

* Towne Bank - exchange ratio implies deal value per share of $59.25 or about $323.7 million based on Townebank’s closing stock price of $34.35 on April 26

* Towne Bank - Robert C. Hatley, president and CEO of Paragon, will continue in his current role as president and CEO of Paragon division

* Towne Bank - Hatley and Paragon board chairman, Howard Jung, will join Townebank corporate board

* Towne Bank - acquisition of Paragon is expected to be immediately accretive to Townebank’s earnings in 2018 and also thereafter

* Towne Bank - transaction is expected to be nominally dilutive, less than 1%, to Townebank’s tangible book value at closing

* Towne Bank - plans to operate in Raleigh, Charlotte, and Cary markets as Paragon Bank, a division of Townebank

* Towne Bank - based on data as of March 31, combined co would have total assets of $9.7 billion, total loans of $7.1 billion, total deposits of $7.5 billion Source text for Eikon: Further company coverage:

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