The parent company of United Bank announced an agreement Thursday to merge with Community Bankers Trust Corp., the parent company of Essex Bank.
The combined organization will have about $29 billion in assets and rank as the 38th largest banking company in the U.S. based on market capitalization.
Community Bankers Trust has assets of about $1.7 billion and is headquartered in the Richmond area. It is the holding company for Essex Bank, which has 24 full-service offices -- 18 in Virginia and six in Maryland. Essex Bank also operates two loan production offices.
The transaction represents the 33rd acquisition of the current administration of United and will result in a combined company with nearly 250 locations. United Bank has dual headquarters in Washington and Charleston, W.Va.
Under terms of the merger agreement, United will acquire all the outstanding shares of Community Bankers Trust in exchange for common shares of United. The exchange ratio will be fixed at 0.3173 of United’s shares for each share of Community Bankers Trust, resulting in an aggregate transaction value of about $303.3 million.
“We are extremely pleased to partner with Community Bankers Trust,” said Richard M. Adams, chairman and CEO of United. “This transaction enhances our existing presence in the DC metro [area] and takes us into new markets, including Baltimore, Annapolis, Lynchburg, Richmond and the Northern Neck of Virginia. It also strategically connects our Mid-Atlantic and Southeast footprints.”
Community Bankers Trust President and CEO Rex L. Smith III will be retained by United as regional president responsible for the existing Essex Bank locations in Virginia.
The merger agreement has been approved by the boards of directors of both companies, and the merger is expected to close in the fourth quarter of the year. Community Bankers Trust will merge into United, and Essex Bank will merge into United Bank, with United and United Bank being the surviving entities.