Sept. 21--NewBridge Bancorp said Friday it has received state and federal regulatory approval to take over Security Savings Bank of Southport, its first bank acquisition since being formed in 2007.
The Greensboro bank expects to take over Security and its six branches Oct. 1. Security was founded in 1911.
NewBridge said in announcing its acquisition plans June 13 that it anticipated the transaction would be ordered by the N.C. Commissioner of Banks. The commission confirmed Friday it had approved the acquisition.
David Barksdale, NewBridge's chief strategy officer, said in June that Security "is not a failed bank."
However, the banks said no shares will be issued or cash exchanged in the transaction, and the banking commissioner tends to get involved directly in a deal only if one party is struggling to the point of needing intervention.
Pressley Ridgill, NewBridge's president and chief executive, said Friday the waiver of the Federal Deposit Insurance Corp. as important for enabling "this unique transaction to occur."
In June, Ridgill acknowledged Security's financial status in the banks' joint statement, saying "community banks have been through a tumultuous economic cycle, and many have suffered the adverse consequences of circumstances beyond their control."
Henry Edmund, Security's chief executive, said in June that the bank "was significantly impacted by the economic downturn, and we were unable to raise the needed additional capital as a mutual savings bank."
The acquisition of Security's $220 million in assets will push NewBridge over the $2 billion threshold for assets and expand its branch network to 36.
NewBridge plans a systems conversion of the Security branches in November, at which time the branches will take on the NewBridge brand. Security has two branches in Southport and one each in Calabash, Oak Island, Shallotte and Sunset Beach.
That increases NewBridge's market-share presence to nine in Brunswick, New Hanover and Pender counties, giving it the top market share among community banks in the Wilmington metropolitan statistical area, as well as No. 5 overall.