First Bank to Move Headquarters to Southern Pines
Hobbs Upchurch & Associates at the corner of SW Broad and Massachusetts streets. Photo by Hannah Sharpe.
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First Bancorp announced late Tuesday afternoon that it plans to move its headquarters from Troy to downtown Southern Pines, a decision hailed as “unprecedented” by local officials.
“Our bank has grown dramatically over the past few years and this new location will help us better serve our customers going forward,” said First Bancorp President and CEO Richard Moore in a statement.
The bank’s announcement came after the Moore County Board of Commissioners and Southern Pines Town Council on Tuesday approved an economic development grant to lure the corporate headquarters.
The county’s agreement, approved by a 4-1 vote at a special meeting, calls for the county to provide $15,000 a year for 10 years to help defray the bank’s costs of moving its headquarters from Troy.
“What the county commissioners just did showed great leadership and courage,” said Pat Corso, executive director of Moore County Partners in Progress. “Not everyone is going to love what they did, and they know that. No one should take that lightly.”
Chairman Nick Picerno said he cast the lone dissenting vote for two reasons.
“First, I didn’t like the funding mechanism because the Moore County taxpayers are on the hook for everything,” Picerno said. “I think Partners should have had some skin in the game. Second, I don’t like governments of any size having to buy companies with taxpayer money.
“I know it’s ‘the game,’ but we shouldn’t have a bidding war with taxpayer money.”
Still, Picerno said he was “thrilled” that First Bank is moving its corporate headquarters to the county.
“Do I want them here? Absolutely,” he said. “Am I a customer? Absolutely. I fully support First Bank coming here. I think it will prove to be a very lucrative thing.”
Commissioner Randy Saunders agreed, saying, “I think it could be huge for us moving forward.”
Tuesday evening, the Southern Pines Town Council voted unanimously to approve $12,000 a year for 10 years to help the bank defray moving expenses.
Corso said landing the corporate headquarters of a publicly traded company makes “an incredibly important statement” about the county.
“It’s unprecedented,” he said. “Not only will there be an immediate impact, but also the long-term possibilities are endless. This may be one of the most important announcements in economic development for years to come.
“It puts another arrow in our quiver, and it’s something we can build on.”
The bank, formally known as First Bancorp, last week purchased the Hobbs Upchurch & Associates building in downtown Southern Pines for $2.65 million.
The bank said in its statement that it would seek federal and state regulatory approval to move its headquarters. It gave no timeframe for when the move would occur.
The decision has been a controversial one in Troy. Town officials have been lobbying the bank for weeks to keep all its operations there.
Moore said in the statement that the bank plans to keep about 150 of the current 190 jobs in Montgomery County.
First Bancorp has total assets of about $3.3 billion, making it the fourth-largest bank in North Carolina.
According to a contract released by Moore County Tuesday, the bank would:
n Employ no less than 30 full-time employees at its corporate headquarters with an average annual salary of $100,000, or have an aggregate annual payroll of at least $5 million;
n Account for at least 200 room nights a year in Moore County hotels and motels. The bank plans to do much of its employee training locally; and
n Give back all its public grant money if it vacates the headquarters in less than 10 years.
Business leaders and local officials have been working for years to recruit First Bank’s headquarters, but the deal finally started to crystallize in the last few months.
One final key hurdle remains. The Southern Pines Town Council was expected to consider a similar grant request at its meeting Tuesday night for the bank. The meeting occurred too late for press time.
Hobbs Upchurch, which has been located in downtown Southern Pines since its founding in 1983, moved into the three-story, 21,000-square-foot building at 300 South West Broad St. in 2000.
Fred Hobbs, co-owner of Hobbs Upchurch and a former state senator, said Monday that the company will be moving into about 5,000 square feet of space at 400 North West Broad St.
“It’s where First Bank currently has its mortgage loan operations,” Hobbs said. “We’re kind of switching out. We’ll be in our new space sometime in the second quarter.”
First Bank operates a branch at 205 South East Broad St. Its other Moore County locations include Pinecrest Plaza in Southern Pines, Aberdeen, Carthage, Pinebluff, Pinehurst, Robbins, Seven Lakes and Vass.
Overall, the bank operates 98 branches in North Carolina, South Carolina and Virginia, where it does business as First Bank of Virginia.
Contact Ted M. Natt Jr. at (910) 693-2474 or tnatt@thepilot.com.
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Comments
MichaelFlorence 2 months, 1 week ago
Normally I am not a fan of offering money to entice a business to move, but in this case it makes sense. I hope that the Council tonight approves the request from First Bank. This will be quite a coup for Moore County and downtown Southern Pines if this happens.
JimRussell44 2 months, 1 week ago
While a boon for Moore County, a setback for Montgomery County. Bottom line, no new job creation, just rearranging the furniture. While $15,000.00 a year (for 10 years) does not sound like a lot of money, you do have to wonder why a company with assets of $3.3 billion dollars, who pays the 30 employees involved in the relocation an average of $100,000.00 a year, would need ANY help to defray their moving costs. You would think the time and gas savings realized by not having to drive so far to play golf would have been incentive enough.
theonewithsense 2 months, 1 week ago
The property taxes on my little business are more than $15,000 a year. But none of my employees make 100,000 a year. If we don't give them the money, they will surely stay in Troy. I'm sure their business plan would support that assumption too...or not.
Toda 2 months, 1 week ago
"Commissioners Chairman Nick Picerno cast the dissenting vote."
As MoF sees political lollipops dangling in fantasy land, we will see more na's than ya's from Chairman Picerno. Just wait until the Veterans Memorial comes off the table and brought to a vote, again, we'll see Chairman Picerno take the high road by voting against a sell to Bo....
geoffcutler 2 months, 1 week ago
Gotta go with JER on this. Paying a bank to move here from Troy? Heck, that's a normal commute where I'm from.
alladat1 2 months, 1 week ago
Isn't this a little too much government involvement in business? Where's the Tea Party when you need them? Why would you want someone telling you how many room nights per year? To really be fair you should force them to eat all of their meals in Southern Pines too.
Toda 2 months, 1 week ago
" Where's the Tea Party when you need them?"
PB55 2 months, 1 week ago
At least on this issue, I totally agree with Nick Picerno's reasons for voting against these incentives. We are becoming like other countries where everyone expects a "payoff". I'm tired of our elected officials "bribing" companies to relocate. And like JimRussell44, I too wonder why a company with assets of 3.3 billion dollars needs help. I also agree with his statement, " Bottom line, no new job creation, just rearranging the furniture."
I'm actually disappointed with First Bancorp for wanting/accepting incentives. If they feel it's in their best interests to make the move to Moore County then let them come, without taxpayer money. You would think First Bancorp would be more proud of their company than to stoop to accepting handouts.
deidretg 2 months, 1 week ago
With a list of current Board of Directors and Directors Emeriti, the incentive to bring First Bancorp Headquarters to Southern Pines has existed for quite some time (indeed, years) and any talk that they might have moved to some other location if not for our forever spend happy BOC generously donating to them $150,000 to seal the deal is just something for the 'light' reader of the local social news to swallow without question. I wonder if there will ultimately be some kind of connection to the management of Moore County banking needs in the future. I wonder how the deserving non-profits will rate when it comes to funding causes in this county which is becoming increasingly distressed with plant closings and job losses. <
Board of Directors (partial list)
John F. Burns - Southern Pines
Executive Vice President, First Bancorp and First Bank
Richard H. Moore (former NC State Treasurer - 2001-2009)
President and CEO, First Bancorp (as of June 11, 2012
Thomas F. Phillips - Carthage, NC (served as Chairman, First Bancorp 2009-10)
Owner, Phillips Ford
Dr. H. David Bruton - Carthage, NC Felton J. Capel - Southern Pines, NC James H. Garner - Robbins, NC William E. Samuels - Southern Pines, NC Edward T. Taws Jr. - Southern Pines, NC
The Board of Directors believes that it is important that a direct and open line of communication exist between the Board of Directors and its shareholders and other interested parties. Any shareholder or other interested party who desires to contact one or more of the Company's directors may send a letter to the following address:
First Bancorp Board of Directors PO Box 417 Troy, North Carolina 27371
TooHot 2 months, 1 week ago
You'd think with all the hype about how great a place Southern Pines is the bank would pay the city $15000 a year to allow it to relocate here.
NCgolfer 2 months, 1 week ago
Looking at their performance as of late, have to wonder how long it will be First Bank? Certainly is more attractive to potential buyers with a Southern Pines HQ.
skylinefirepest 2 months, 1 week ago
Gotta go with Nick on this one...while I love First Bank and have done a bit of business with them I also don't believe in "bribing" business with tax money. If it was a great advantage for 1st Bank to move then why did we need to pay them? And I freely admit, through over thirty years with a local business nobody ever bothered to bribe me with anything...dealing with the local government actually cost me.
Easygoing 2 months, 1 week ago
They are all doing it, look at Pinehurst planning to spend $250,000 of the taxpayer's money for a parking lot and small dead end road to support a brewery. Why don't the taxpayers start to rebel against these "incentives"? Tea Party folks love to complain about excess government except when it happens in their own back yard.
deidretg 2 months, 1 week ago
The Tea 'Sippers' have turned a blind eye to what their 'buds' on the BOC in Moore County have been doing to this county while they caravan off to Washington in protest to rail against the same kinds of things that are going on right here in their own back yard. Yet, not a peep here about Moore County. Total hypocrits. They wiil silently stand by while this bogus bunch runs all over the veterans of this county later today (Mar 13th) with their sham 'Veterans Committee' that doesn't allow public comment during this BOC controlled charade. Here's what the BOC rep (Jimmy Melton) said last Sept to the veterans without so much as a peep of protest in the 'news' from the 'Tea Sippers';
"Veterans committee member Ruby Hendrick said she thought the memorial was already protected.
“Not really,” Melton said. “We could sell it tomorrow.”
“So all we’re talking about is protecting where the memorial is now, only that?” Hendrick asked.
Melton nodded in affirmation.
“We’re not talking about the adjacent property (where Bojangles’ could potentially be located) yet,” he said.
Melton said the council had “two groups” to appease: veterans and taxpayers." (The Pilot, Sep 24, 2012)
You will hear from these shysters that the veterans plan for preserving the site is just too expensive in these tight times after having just rolled $150,000 of Moore County's tax money out the door to their 'banker buddies', Tea Party? What a joke.
deidretg 2 months, 1 week ago
7:45am, well, this article is good for about 15 more minutes of enlightenment before it gets yanked to the wastebin. Too much light on dark deeds sounds the panic button every time. Back to the 'Tea' socials and card games.
Toda 2 months, 1 week ago
Sky ~ I know you can recall when Tim Lea would vote against the subliminal shenanigans by TPo4 like behind closed door meetings in violation of the Sunshine Law.
Just another political ploy by MoF....
uwharrieheirlooms 2 months, 1 week ago
Moore County sucks. Literally. It's sucking Montgomery County's water, it's sucking Montgomery County's Tier I status for the heart of NC Industrial Park, and now it's sucking in Montgomery County's businesses.
alladat1 2 months, 1 week ago
deidretg - You were right, they already posted an "updated" article with a few extra quotes from Pat Corso and Nick P.. Everybody should post their same messages on the new article.
anniest07 2 months, 1 week ago
Good golly! Haven't the American taxpayers subsidized banks enough? where will this end? I thought our republican commissioners worshipped at the altar of free enterprise and small government? If a bank wants to relocate its headquarters, why should they want me to help them pay for it. If I had an account at First Bank, I would definitely be moving it to another local bank that did not require my subsidy.
deidretg 2 months, 1 week ago
"First Bancorp has total assets of about $3.3 billion, making it the fourth-largest bank in North Carolina." Let's see, that's $3,300,000,000.00 for those of us living off of $1,000 a month or less in Social Security plus whatever part time work can be found in this county. How did they get that much money? Well, here in Moore County in just the last few days they gobbled up the biggest prime real estate that ever was in Southern Pines (Hobbs, Upchurch building for $2,650,000. Unfortunately, for Fred Hobbs, the Moore County Tax Value is listed as $3,244,900 and that doesn,t count the value of this prime location situated on half of a downtown block between Broad St. and Bennett St. That alone is practically priceless in the business world.They made out like fat rats on the transaction alone plus the hidden value of location, location, location. Then they get the Moore County BOC 'boys' to pony up another $150,000 for moving expenses. You can bet Moore County knew better than to go it alone in such a fiscally stressed times as these with plant closing, job losing headlines in the news so they got Town of Southern Pines to pony up their own $120,000 for First Bancorp's moving expenses, also. Who is going to help the work-a-day folks that now face no prospects for jobs after working their whole lives at one of the oldest and most established plants to ever originate in Moore County? Is anybody likely to pony up the funds to help them move out of their foreclosed homes? Not likely. Every one of these 'Directors' that I listed below who are also listed on the First Bancorp website already live here at a cost of $0 to move. They are bringing with them 30 more employees who are also making six figures ($100,000+). We need to pay them to move to Moore County out of county and town coffers? This kind of privileged arrogance reminds me of the flawed thinking of the privileged Marie-Antoinette (1755-93), the Queen consort of Louis XVI. She is supposed to have said when she was told that the French populace had no bread to eat "Let them eat cake!". Only, here it will be "Let them eat donuts!" Board of Directors (partial list)--------
John F. Burns - Southern Pines--------
Thomas F. Phillips - Carthage--------
Director Emeriti:>>>>>>
Dr. H. David Bruton - Carthage-------
Felton J. Capel - Southern Pines--------
James H. Garner - Robbins-------
William E. Samuels - Southern Pines
Edward T. Taws Jr. - Southern Pines
TF121 2 months, 1 week ago
This appears to be a good move for the county and for the Town of Southern Pines. According to the article, Moore County will provide $15,000 a year (via our contributed tax dollars) for 10 years to help "defray" the bank's costs of moving from Troy. OK. But what annual tax dollars will this location provide to the town and to the county? How about numbers on that, Mr. Natt? Just find out and drop it in the comments, so we all get a clearer and more complete understanding of the additional benefit? This is "Sunshine" week, afterall, whereby we are to enjoy transparency into government actions. So, please, shed some light on this for us.
JimRussell44 2 months, 1 week ago
TF121, perhaps you can ask the folks of Montgomery County how much tax revenue they LOST to answer your question. My idea of job creation is to have new business move in, not stealing businesses from other areas with monetary bribes.
jr27356 2 months, 1 week ago
Love how the ceo lied to montgomery county !!
Toda 2 months, 1 week ago
jr27356 ~ Not just the CEO, but how much longer will MoF think that the public is as stupid as they think we are when it comes to conniving politicians and their cronies. Perhaps next election, they will understand that the public isn't just plain stupid....
lizardman 2 months, 1 week ago
what takes "great leadership and courage" to steal a bank from a neighbor county for only $15,000 a year? Our commissioners are so brave (:. Shame on 1st bank for selling Montgomery county out for that pittance. What if they match it? Will our brave commissioners show even greater leadership and courage and step up the incentive?
alladat1 2 months, 1 week ago
Pat Corso seems to put his "blessing" on a lot of things that: “Not everyone is going to love what they did, and they know that. No one should take that lightly.”
Toda 2 months, 1 week ago
"According to the article,"
Pat Corso was a great manager when it came to the Resort's business. As we all know, taxpayers spent thousand to extend the runway at the airport so larger corporate jets could fly in for the 2014 Open. Why not use ones muscle when it comes to leveraging votes by MoF when it is not anyone's money but money belonging to taxpayers.... "You can fool some of the people some of the time, but not all of the people all of the time", Abraham Lincoln.