The parent company of United Bank (“United Bank”), United Bankshares, Inc. (UBSI), and the parent company of CresCom Bank (“CresCom”), Carolina Financial Corporation or Carolina Financial, in a press release, announced their merger to establish and uniquely position the leading community bank in the southeast and mid-Atlantic. It tailed the news of the acquisition of Carolina Financial by United Bankshares.
Richard M. Adams, Chairman and CEO of United stated:
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.
The exchange ratio of the merger will be fixed at 1.13 of United’s shares for each share of Carolina Financial, generating an aggregate transaction value of around $1.1 billion.
The combined value of the assets of the organization will be around $25 billion, which will put it among the top 35 largest banks in the U.S., based on market capitalization. As per reports, under the merger agreement, West Virginia-based United Bankshares will acquire all of Carolina Financial’s outstanding shares in a $1.1 billion stock deal.
United, had branches in seven states along with the District of Columbia and ventured into the North and South Carolina markets in 2017. The merger will unite two of the best-performing banking groups in the country, with branches in over 200 locations in some of the most sought-after banking markets in the land.
Reportedly, the merger agreement was unanimously accepted and approved by the administrators of both the companies. It is anticipated to close by the beginning of the third quarter of 2020, but it is dependent on the satisfaction of conventional closing conditions, including the receipt of regulatory approvals and consent from the stockholders of both the companies. Carolina Financial will be absorbed into United, and CresCom will join with United Bank, with United and United Bank being the only surviving entities.
Carolina Financial’s CEO, and one of the would-be board members and executive officer, Jerry Rexroad commented:
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.