(THOMASVILLE) -- Bank of North Carolina, a subsidiary of BNC Bancorp has entered into a purchase agreement with Hampton Roads Bankshares, Inc., which operates The Bank of Hampton Roads and Shore Bank.

Bank of North Carolina will purchase all deposits associated with the Gateway Bank & Trust Company branches located in Cary and Chapel Hill.  These two branches are expected to remain open.

"The announced acquisition of Key Source Bank in Durham expected to close in second quarter of this year, along with the existing Raleigh team and recently hired Cary team will provide tremendous branding and growth dynamics for Bank of North Carolina," said Richard D. Callicutt II,  President of Bank of North Carolina.

The acquisition announcement comes as High Point based BNC Bancorp reported first quarter net income of $1.7 million. This was in increase from $1.5 million during the same period of the prior year.