The merger of Carolina Financial into United Bankshares will result in the combined banking organisation having nearly $25bn in assets

United Bankshares

Image: United Bank branch in Arlington, Virginia. Photo: Courtesy of Ser Amantio di Nicolao/Wikipedia.org.

United Bankshares, the parent company of United Bank, has agreed to acquire 100% of shares in CresCom Bank’s parent company Carolina Financial, for $1.1bn.

The result will be the merger of CresCom Bank’s banking operations into United Bank.

The combined organisation is expected to have nearly $25bn in assets. The merger will position the bank as a leading community bank in the Southeast and Mid-Atlantic regions in the US.

The resultant organisation will have more than 200 locations across some of the most desirable banking markets in the country.

United Bankshares will acquire 100% of the shares of Carolina Financial in exchange for its common shares. The exchange ratio is fixed at 1.13 of United’s shares for each share of Carolina Financial, and will result in an aggregate transaction value of about $1.1bn.

United Bankshares chairman and CEO Richard Adams 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 is located across seven states plus the District of Columbia and had entered the North and South Carolina markets in 2017.

After the closure of the deal, Carolina Financial CEO Jerry Rexroad will join United Bankshares as a board member and executive officer. He will also serve as United’s Carolinas franchise chairman and will continue to serve as CresCom’s Crescent Mortgage Company chairman.

Rexroad 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.”

The deal is expected to be closed in Q2 of next year

The merger agreement was unanimously approved by the boards of directors of both banks. The deal is expected to be closed in the second quarter of next year, subject to the fulfilment of customary closing conditions, including receipt of regulatory approvals and approval from the shareholders of both companies.

With the closure of the deal, Carolina Financial will merge into United Bankshares and CresCom will merge into United Bank. United Bankshares and United Bank will become the surviving entities.

United also stated that before it closes the deal, the acquisition of Carolina Trust BancShares by Carolina Financial is expected to be closed before this year-end.

Carolina Financial, based in Charleston, South Carolina, has nearly $3.9bn in assets. Its subsidiary CresCom Bank is present across 62 locations in North and South Carolinas.