United Bankshares to buy rival bank holding firm Carolina Financial
United Bankshares acquisition of Carolina Financial : United Bankshares, the parent company of United Bank, has signed a deal worth around $1.1 billion to acquire Carolina Financial, the parent company of CresCom Bank.
Carolina Financial, based in Charleston, South Carolina, has approximately $3.9 billion in assets and its subsidiary CresCom Bank has 62 locations in North and South Carolinas, as of 30 September 2019.
As per the deal, Carolina Financial will merge into United Bankshares, while CresCom Bank will merge into United Bank. The enlarged bank holding company is expected to have nearly $25 billion in assets.
The merger is expected to create a major community bank in the Southeast and Mid-Atlantic regions with 200 plus locations.
Richard M. Adams – Chairman and CEO of United Bankshares, commenting on United Bankshares acquisition of Carolina Financial, said: “We are excited about our partnership with Carolina Financial Corporation and the opportunities it affords both organizations.
“Our companies share complementary cultures, a commitment to our customers, and a focus on serving our communities. This transaction represents a significant step towards continuing to grow United’s presence in the Carolinas.”
United Bankshares acquisition of Carolina Financial. Photo courtesy of Ser Amantio di Nicolao/Wikipedia.org.
In addition to locations across seven states plus the District of Columbia, United Bankshares had entered the North and South Carolina markets in 2017.
United Bankshares will acquire Carolina Financial’s shares at an exchange ratio of 1.13.
Commenting on United Bankshares acquisition of Carolina Financial, Jerry Rexroad -Carolina Financial CEO said: “We are partnering with a bank that has a strong community banking culture, along with the resources of a larger institution. We believe that United is the very best partner to create the most trusted community bank in the communities we serve.”
United Bankshares, Carolina Financial merger is expected to close in Q2 2020 once it meets all the customary closing conditions, including receipt of regulatory approvals. and approval from the shareholders of both the bank holding companies.
Prior to the closure of the deal, United Bankshares expects Carolina Financial to wrap up its previously announced $100.1 million acquisition of Carolina Trust BancShares, the parent company of Carolina Trust Bank.