First Citizens completes Mountain 1st Bank deal

01/02/2014 1:14 PM

01/02/2014 1:16 PM

First Citizens Bank has completed its previously announced acquisition of Mountain 1st Bank & Trust of Hendersonville, a deal that gives it a dozen more branches in Western North Carolina.

Raleigh-based First Citizens announced that, as of Thursday, the former Mountain 1st branches were operating as First Citizens locations. Customer accounts in those branches will be switched to First Citizens’ systems this spring and, in the meantime, can continue to use Mountain 1st checks, debit and credit cards and access their accounts online.

The deal was announced in August and was approved last month by shareholders of Mountain 1st, which has struggled in recent years and consequently was being pressured by regulators to raise additional capital.

First Citizens paid $10 million to acquire Mountain 1st, with all but $2 million going to the U.S. Treasury to pay off funds that Mountain 1st received under the federal bailout program for banks, the Troubled Asset Relief Program.

First Citizens has more than 400 branches in 17 states and the District of Columbia.

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