United Bankshares to acquire Carolina Financial for $1.1bn

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, as per the latest banking acquisition news.

The merger between the two US bank holding companies will create a major community bank in the Southeast and Mid-Atlantic regions.

United Bankshares will offer 1.13 of its shares for each of the Carolina Financial’s shares.

Jerry Rexroad – CEO of Carolina Financial CEO, commenting on United Bankshares acquisition of Carolina Financial, 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.”

Based in Charleston, South Carolina, Carolina Financial, held around $3.98 billion of assets, as of 30 September 2019. It operates 62 CresCom Bank locations across the states of North Carolina and South Carolina.

CresCom Bank, in turn, owns and operates the Atlanta-based Crescent Mortgage Company.

In July 2019, Carolina Financial signed a deal to acquire North Carolina-based Carolina Trust BancShares, the parent company of Carolina Trust Bank, for about $100.1 million. The acquisition is expected to be closed by the year-end.

United Bankshares acquisition of Carolina Financial. Photo courtesy of Ser Amantio di Nicolao/Wikipedia.org.

United Bankshares, on the other hand, is headquartered in Washington D.C. and also in West Virginia. As of 30 September 2019, United Bankshares had nearly $19.8 billion in assets.

United Bank and its mortgage subsidiary George Mason Mortgage operate 138 full-service banking locations and 16 mortgage offices in seven states and in Washington D.C.

Post-merger, the combined organization will hold around $25 billion in assets and will be among the top 35 largest banks in the US in terms of market capitalization.

Commenting on United Bankshares acquisition of Carolina Financial, Richard M. Adams – Chairman and CEO of United Bankshares, 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.”

The closing of United Bankshares acquisition of Carolina Financial is likely to occur in Q2 2020 and will be based on receipt of customary regulatory approvals, approval by the shareholders of the two bank holding companies, and fulfilling customary closing conditions.

United Bankshares’ financial advisor is Sandler O’Neill & Partners, while Bowles Rice is the legal counsel. For Carolina Financial, the financial advisor has been Raymond James & Associates with Nelson Mullins Riley & Scarborough being the legal counsel.