First Carolina raises $115M for expansion efforts

First Carolina Financial Services in Rocky Mount, N.C., has raised $115 million through a private placement of common stock. 

The $1.5 billion-asset company said in a press release Monday that it sold 4.6 million shares at $25 each to accredited individual and institutional investors. It is the company’s largest private placement – about $90 million came from local investors. 

First Carolina said it plans to use the proceeds to enhance capital ratios and support growth, among other things. 

“The completion of this private placement … reflects increasing customer demand for our service model across an expanding footprint,” Ron Day, First Carolina’s president and CEO, said in the release. 

“Our new and existing Southeast markets are experiencing significant growth and banking industry consolidation,” Day added. “We continue to see opportunity as the inevitable disruption of consolidation causes customers and talented bankers alike to demand better responsiveness and skill from their financial institution.” 

The company recently expanded into South Carolina and Atlanta. 

Keefe, Bruyette & Woods was the placement agent. Wyrick Robbins Yates & Ponton advised First Carolina, while Covington & Burling advised KBW.