United Bankshares Announces Merger

Posted: January 30, 2013

HARRISONBURG — United Bankshares chairman and CEO Richard M. Adams today announced the signing of a merger agreement with Virginia Commerce Bancorp, Inc.

United has several branches throughout the central Valley, including in Harrisonburg, Bridgewater, Broadway, Elkton and Weyers Cave,  through its subsidiary, United Bank.

The acquisition of VCBI will allow United to “significantly enhance its existing footprint in the Washington, D.C., Metropolitan Statistical Area,” according to a statement from the company.

Since 1982, United has completed 28 acquisitions. VCBI, headquartered in Arlington, has $2.8 billion in assets and 28 banking offices, one residential mortgage origination office and one wealth management office, all in Northern Virginia.

VCBI locations are in the Northern Virginia suburbs of Washington, D.C. With the acquisition of VCBI, United’s assets will grow to approximately $11.2 billion.

United will acquire 100 percent of the outstanding shares of VCBI in exchange for common shares of United. The exchange ratio will be fixed at 0.5442 of United’s shares for each share of VCBI. That equates to a deal value of $14 per share, or approximately $490.6 million in the aggregate, based on United’s 10-day average closing price, as of Tuesday, of $25.73.

The transaction, which has been unanimously approved by both United’s and VCBI’s Boards of Directors, is expected to close in the third quarter of 2013, pending regulatory approvals and the approval of both firms’ shareholders.

The transaction is worth about $490.6 million based on VCBI’s common shares outstanding, plus outstanding options and warrants. The announced price represents a premium of 15 percent over VCBI’s closing price on Tuesday, and 1.82 times VCBI’s tangible book value  at the end of last year.
— Staff Reports

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