Financials Company First Community Announces Merger With Surrey Bancorp

First Community FCBC has announced a merger with Surrey Bancorp SRYB that is expected to be completed in Q2 of 2023.

Under the terms of the agreement, First Community has agreed to give Surrey Bancorp $113.20 million in stock in exchange for SRYB stock.

About The Companies Involved

First Community Bankshares Inc is a financial holding company that provides commercial banking products and services. The company is engaged in providing demand deposit accounts, savings, and money market accounts, certificates of deposits; commercial, consumer, and real estate mortgage loans, and lines of credit; various credit card, debit card, and automated teller machine card services; corporate and personal trust services; investment management services and life, health, and property and casualty insurance products.

Surrey Bancorp is engaged in offering comprehensive individual and corporate financial services. The Bank serves Surry County, North Carolina and Patrick County, Virginia and surrounding areas through six banking offices.

How A Merger Works

A merger happens when a company combines operations with another company. In practice, one company will buy the other company's stock in exchange for its own stock. In some cases, cash is used to pay for the company's stock but usually the companies agree to a stock-for-stock transaction.

Due to the exchange and acquisition of stock, a merger is similar to an acquisition. This is why the two terms are commonly grouped together as mergers and acquisitions (M&A). However, in a merger, the leadership & operations of both companies usually change dramatically, while during an acquisition this is less likely to happen.

Make sure to follow our mergers & acquisitions calendar to stay-up-to-date on the most recent M&A deals.

This article was generated by Benzinga's automated content engine and reviewed by an editor.