First Bancorp (NASDAQ: FBNC) announced today the completion of its previously announced merger with Carolina Bank Holdings, Inc. (NASDAQ: CLBH).

Under the terms of the merger agreement, for each share of Carolina Bank Holdings common stock, shareholders have the right, subject to certain limitations, to receive either $20.00 in cash or 1.002 shares of First Bancorp common stock. Per the merger agreement, 25% of the consideration will be paid in cash and the balance of 75% will be in newly issued shares of First Bancorp common stock. The mailing of materials regarding the election and exchange of Carolina Bank Holdings stock certificates will commence next week.

Also under the merger agreement, Carolina Bank Holdings' subsidiary bank, Carolina Bank, has merged with First Bank, a North Carolina bank and the wholly-owned banking subsidiary of First Bancorp. First Bancorp plans to complete systems integration in August.

About First Bancorp

First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of approximately $4.3 billion. Its principal activity is the ownership and operation of First Bank, a state-chartered community bank that operates 96 branches in North Carolina and South Carolina. First Bank also has loan production offices in Greensboro, North Carolina and Raleigh, North Carolina. First Bank also provides SBA loans to customers through its nationwide network of lenders – for more information on First Bank's SBA lending capabilities, please visit www.firstbanksba.com. First Bancorp's common stock is traded on The NASDAQ Global Select Market under the symbol "FBNC."

Please visit our website at www.LocalFirstBank.com.