First Bancorp in Southern Pines, N.C., has sold its insurance business.
The $7.7 billion-asset company disclosed in a regulatory filing Friday that Bankers Insurance in Glen Allen, Va., bought “substantially all” of the operating assets and certain liabilities tied to First Bank Insurance Services.
Bankers Insurance paid $13 million upfront. The deal includes a future earnout payment of up to $1 million.
First Bank’s insurance business focused on property and casualty coverage.
Bankers Insurance was formed by an association of community banks in 1999.
The sale “represents a good business opportunity for First Bank,” Michael Mayer, the bank’s president and CEO, said in the filing.
“Our customers will continue to benefit from an ongoing referral relationship with Bankers Insurance,” Mayer added. “In addition, the capital provided from this transaction will further support First Bank’s continuing loan growth an regulatory capital needs.”