Your Community Bank to Join WesBanco
A West Virginia-based bank-holding company is acquiring Your Community Bankshares, the Indiana firm that acquired First Federal Savings Bank 16 months ago
The announcement, made after the stock markets closed Monday, described as a definitive agreement and merger. It said the plan, approved by directors of both companies, provides for the merger of Your Community with and into WesBanco.
“The merger with Your Community meaningfully expands WesBanco’s franchise into attractive markets in Kentucky and Southern Indiana and a top 10 market share in the Louisville MSA,” Todd F. Clossin, president and chief executive officer of WesBanco, said in a release.
When the transaction receives all necessary regulatory approval and is completed, WesBanco will provide banking services through 177 branch locations in five states. The transaction expands WesBanco’s franchise by 36 offices in the Louisville, Elizabethtown, Lexington and Evansville MSAs. Based in Wheeling, WesBanco can trace its history to 1870.
The deal includes all former properties of First Federal, which was founded in 1923, held a dominate market share locally before the recession of 2008 led to stresses in retail lending. Its stock prices plummeted and it eventually came under federal regulatory scrutiny and oversight. Directors eventually accepted the option of finding a partner bank with excess capital, which introduced Your Community Bank to the local market. The deal was completed in January 2015.
WesBanco will exchange a combination of its common stock and cash for Your Community common stock. Your Community shareholders will be entitled to receive 0.964 of a share of WesBanco common stock and cash in the amount of $7.70 per share for each share of Your Community common stock for a total value of approximately $39.05 per share or $221.0 million in aggregate based on WesBanco’s market close price of $32.52 on May 2. The exchange ratio is based on the average closing prices of WesBanco common stock of $31.96 over the 10-day period ending April 27.
Both companies are publicly traded on the NASDAQ market. WesBanco Inc. is listed as WSBC and Your Community Bankshares Inc. goes by YBC.
Excluding certain one-time merger charges, the merger announcement said the transaction is anticipated to be 6 to 7 percent accretive to earnings in 2017, and approximately 9 percent accretive to earnings in 2018 once anticipated cost savings are phased in.
As a result of the merger, it is anticipated that WesBanco will add two Your Community directors to its board of directors. In addition, Jim Rickard, Your Community’s president and CEO, will join WesBanco as market president for Kentucky and Southern Indiana.
Original article here from The News Enterprise