United Bankshares, Inc. announced in a press release that it will be acquiring Bank of Georgetown, a privately held community bank, for approximately $269 million.
The acquisition will strengthen United Bankshares' franchise and enhance its existing footprint in the D.C. Metro region.
United Bankshares said in the press release that the Bank of Georgetown will merge with United Bank, the largest community bank of United Bankshares that is headquartered in the D.C. Metro region.
Once the merger is complete, United Bank will have assets of approximately $8.5 billion.
United Bankshares adds in the press release that United Bank will also be considered as having the number one deposit market share of all community banks in the Washington D.C. MSA.
Bank of Georgetown has $1.2 billion in assets along with 11 branches and three business development offices across Washington D.C., Montgomery, Maryland, and Northern Virginia.
Richard M. Adams, the chairman and CEO of United Bankshares, said in the press release that they are excited to be acquiring Bank of Georgetown.
"It is one of the most valuable of the remaining independent banking franchises in the nation's capital MSA," he said. "Our companies share much in common, beginning with our commitment to building strong relationships with the individuals, businesses, and organizations in the communities we serve."
The Washington Business Journal adds that the deal would also make United Bankshares the ninth largest local bank in the region based on 2015 numbers.
Prior to the deal, United Bankshares was the 10th largest bank in the region based on local deposits and the Bank of Georgetown was 20th.
The Washington Business Journal adds that the acquisition will also put United Bankshares one spot ahead of its rival Eagle Bancorp Inc.
The two banks have been jockeying for several years as to who is the most dominant community bank.
Under the terms of the agreement, United Bankshares will be acquiring 100 percent of the outstanding shares of the Bank of Georgetown in exchange for the bank's common shares, according to the press release.
The exchange ratio will be fixed at 0.9313 of United Bankshares for each share of Bank of Georgetown.
The transaction, which has been unanimously approved by the board of directors of both banks, is expected to close in mid-2016, according to the press release.
