City Holding Company and Community Financial Corporation enter merger agreement
City Holding and Community Financial plan to merge.
Business negotiations between City Holding Company and Community Financial Corporation have resulted in the firms entering a strategic merger agreement.
It is thought this tie-up will result in City enhancing its operations in Virginia and the merger should be completed during the first three months of 2013, following shareholder approval, the green-lighting of the combination from regulators and the conclusion of other customary closing conditions.
City president and chief executive office Charles Hageboeck revealed that for "some time", his firm has admired the franchise owned by Community.
In Virginia Beach and Staunton, Community has established itself as being an important commercial lender, while it has a "solid retail deposit franchise [and] operates in markets with higher growth rates than City's core markets", he continued.
Recently, City finalised its acquisition of Virginia Savings Bank, which had assets of $130 million (£83.7 million).
However, Community's holdings hit $500 million and the merger would result in shareholders of the bank receiving 0.1753 shares in City's common stock for every share they own.
Posted by David Gleck
Source: City press release, August 2nd