East Carolina Bank and Crescent State Bank announced Tuesday plans to move forward with a definitive merger agreement.

Crescent Bank -- which is in the process of buying VantageSouth Bank -- will purchase Englehard-based East Carolina Bank for $17.75 per share, or $51.6 million, pending approval from federal regulatory officials and bank shareholders.

Officials expect the merger to occur during the first quarter of 2013.

Upon completion of the ECB transaction, the combined company will have approximately $2 billion in total assets, $1.7 billion in total deposits, $1.2 billion in total loans and a network of 45 branches in North Carolina.

At closing, East Carolina Bank Bancorp will be merged into Crescent Financial and East Carolina Bank will subsequently operate as VantageSouth Bank. Crescent State Bank will begin operating as VantageSouth as well, with a rebranding and name change initiative happening in the second quarter of 2013.

East Carolina Bank currently operates 25 branches, including five locations in the greater Wilmington area. Crescent State Bank has two branches in the Wilmington market.

Scott Custer, current president and CEO of Raleigh-based Crescent State Bank, will remain the CEO, while current East Carolina Bank CEO Dwight Utz will serve as the bank board chairman once the two financial firms merge.  

Custer said acquiring East Carolina Bank would help Crescent State Bank increase its presence throughout North Carolina.

“It’s part of our primary strategy to build and grow our franchise in North Carolina,” Custer said. “East Carolina Bank is the best community bank in North Carolina and it was the most logical move we could make.”

Custer said, upon the merger, it would maintain its current employee base, and would consolidate its commercial and mortgage banking and small business banking center into its office building on Military Cutoff Road.

He said Crescent State Bank headquarters would remain in Raleigh. It’s unclear whether the firm would maintain a corporate presence in Englehard.

“By coming together, there is going to be a much bigger presence in the market that could lead to more employees over time,” Custer said.  “That’s always a possibility.”

Utz said the merger would be advantageous to the region.

“We are pleased and excited to join such a dynamic and financially strong banking company,” Utz said in a news release. “Together we will create value for our respective shareholders and enable our employees to do what they do best -- deliver exceptional service to our customers and contribute to the success of the communities where they live and work.”