Southern BancShares (N.C.), Inc. (OTCPK:SBNC) signed a definitive agreement to acquire Heritage Bankshares Inc. (OTCPK:HBKS) for $48.8 million in cash on October 21, 2015. Under the terms, Southern will pay $21.05 in cash for each of the outstanding shares of Heritage's common stock, subject to possible adjustment. Following the merger, Michael S. Ives will serve as a Director of Southern BancShares and Southern Bank. He will also serve as a consultant to Southern Bank regarding Heritage Bank's business, operations, customers and loan portfolio and Southern Bank's continued growth and expansion in Hampton Roads. The deal is subject to approvals by regulatory agencies and Heritage's shareholders and other customary closing conditions. The deal has been unanimously approved by the Boards of Directors of both Southern and Heritage. The transaction is expected to be completed during the first quarter of 2016. As on December 31, 2015, the transaction has received all required regulatory approvals and is scheduled to close on January 29, 2016. As of January 12, 2016, the deal is approved by shareholders of Heritage Bankshares Inc.

Raymond James & Associates, Inc. acted as financial advisor and Ward and Smith, PA acted as legal advisor to Southern. FIG Partners LLC acted as financial advisor and Jake Lutz, Susan Ancarrow, Lynda Crouse, Mark Jones, Seth Winter, Greg Matisoff and Beth Petty of Troutman Sanders LLP acted as legal advisors to Heritage and Heritage Bank.