April 30, 2009 (FinancialWire) — Four Oaks Fincorp, Inc. (OTCBB: FOFN) (Current Market Cap: US$46.55 Mil.) has agreed to buy Nuestro Banco in a deal worth around $2.7 million. The company will merge Nuestro into its Four Oaks Bank & Trust Co. unit.

Raleigh, North Carolina-based Nuestro is a commercial bank with total posted assets of around $16.8 million and total deposits of around $7.6 million as of December 31, 2008. It operates one branch, and is focused on serving the local Hispanic community.

The transaction value is based on the closing price of Four Oaks Fincorp, Inc.’s common stock on April 29. Under the terms of the agreement, Nuestro’s shareholders will receive 0.2697 shares of Four Oaks Fincorp common stock for each share of outstanding Nuestro capital stock.

Four Oaks said that the deal has been approved by the boards of directors of both companies. The transaction is subject to the approval of Nuestro’s shareholders and regulatory agencies, as well as to other customary conditions of closing.

Four Oaks, North Carolina-based Four Oaks operates 17 branches in eight North Carolina counties. Four Oaks Fincorp posted assets of $957.3 million, net loans of $696.3 million, deposits of $755.0 million, and shareholders’ equity of $67.3 million as of June 30, 2008.

The company had 6.965 million shares outstanding as of that date.

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