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United States : CITY HOLDING to acquire COMMUNITY BANK
Publish Date : 06-Aug-2012
Thursday, City Holding Co. and Community Financial Corp. announced the execution of a deal, by which City it to take over Community along with its fully owned subsidiary, Community Bank. Along the I-81 corridor in western Virginia, Community has nine branches under operations along with two branches in Virginia Beach. This acquisition would expand City’s operations in Virginia. Community\'s assets are worth $500 million.
Charles R. (Skip) Hageboeck, president & CEO of City said, \"City has admired the Community franchise for some time. Community has a solid retail deposit franchise, operates in markets with higher growth rates than City’s core markets, and has established itself as a significant commercial lender in both the Staunton and Virginia Beach markets. We are excited to partner with Community, and believe that City’s own emphasis on community-based banking, and the opportunity to bring additional products and services to both retail and business customers of Community, make this a fantastic combination.\"
Pending regulatory approvals, approval from Community shareholders, and the completion of other customary closing conditions, the transaction is expected to conclude during the first quarter of 2013.
Community shareholders as part of the deal would get 0.1753 shares of City common stock for each share of Community common stock.
Norman C. (Butch) Smiley III, president & CEO of Community said, \"For nearly 85 years, Community has served its customers and communities in the Shenandoah Valley of Virginia. We are proud of the service we have provided to our customers and by the community and civic pride our company and our employees have demonstrated. However, the challenges facing small community banks and the lack of significant economic growth since 2008, in addition to increasingly stringent regulatory oversight and expense, led Community to consider partnering with a larger community bank which shares our commitment to customers and to local communities.\"
He added, \"City is a highly respected, profitable and well-run community bank. Bank Director Magazine ranked City the #3 best performing bank in the US in 2010. Our shareholders will benefit from City’s financial strength, our customers will benefit from enhancements to products and services that larger banks can offer, and our communities will continue to enjoy the commitment of a bank with strong roots in its communities. We are excited about combining our business with City.\"
