First Bancorp sells insurance subsidiary for $13 million

First Bancorp sells insurance subsidiary for $13 million

First Bancorp said in a regulatory filing that its First Bank Insurance Services Inc. subsidiary has completed the sale of the operations and assets of the FB Insurance’s business to Bankers Insurance LLC.

The deal calls for an initial purchase price of $13 million and a future earn-out payment of up to $1 million.

Prior to the sale, FB Insurance’s primary business activity was the placement of property and casualty insurance coverage.

Bankers Insurance, based in Glen Allen, Va., was formed by an association of community banks in 1999, and has offices in North Carolina, Tennessee, Virginia and West Virginia.

“We believe the sale of our property and casualty insurance business to a dedicated insurance firm represents a good business opportunity for First Bank,” Michael Mayer, the bank’s president, said in a statement. “The capital provided from this transaction will further support First Bank’s continuing loan growth and regulatory capital needs”.

In a separate regulatory filing, the bank’s board of directors said it appointed Dexter Perry to the board, effective Tuesday.

Perry, age 51, is a certified financial planner and a registered investment advisor representative with One Providence Capital LLC of Cary.

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