First American Financial Management Company to Acquire Community Bank of Rowan
Published July 16th, 2009
First American Financial Management Company, a de novo, privately-held Delaware corporation formed by D. Ben Berry, founder and former Chairman, President and Chief Executive Officer of Gateway Financial Holdings, Inc. and Gateway Bank & Trust Company, announced today that it has successfully negotiated a definitive agreement to acquire Community Bank of Rowan, Salisbury, N.C. Community Bank of Rowan is owned 51% by Capitol Bancorp, Ltd., Lansing, Mich. and 49% by local investors in the greater Salisbury market. The transaction is subject to the approval of Rowan shareholders and federal and state regulatory authorities. The transaction is anticipated to close in the third quarter of 2009.
Mr. Berry, President and CEO of First American, commented: “Acquiring Rowan will give us our initial platform from which we intend to effect additional acquisitions primarily in North Carolina, Virginia and South Carolina. Our business plan, however, does not limit us with regard to geographic boundaries. Rowan brings a solid initial franchise with excellent management. We only intend to make those changes at Rowan which will allow it to continue to grow. This will include capital infusions as needed to keep Rowan ‘well-capitalized’ for regulatory purposes. In order to continue the mission Rowan set out to accomplish, Bruce D. Jones, President of Rowan, will remain in that position and the entire Board of Directors of Rowan has been invited to remain on the Board. Bruce Jones will join me at First American as our Chief Operating Officer. We have identified additional senior managers experienced in the field of community banking who will come aboard shortly to help carry out our strategic plan.”
Mr. Berry continued: “We have privately raised sufficient capital to consummate our initial acquisition and are continuing to raise additional capital to implement our overall strategic plan. We continue to seek out both healthy and ailing banks that will make strategic metrics that fit our strategy. We will even look at FDIC assisted transactions as appropriate.”
Sandler O’Neill & Partners, L.P., New York, N.Y., acted as financial advisor to First American in connection with the Rowan transaction.
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