Shareholders of Community
Financial Corp., based in Staunton, Va., will vote Jan. 8 on whether to accept
an offer to be acquired by City Holding Co. of Charleston.
On Aug. 2, City Holding announced that it had executed an agreement to
acquire Community Financial Corp. of Staunton, Va., in a $25.3 million
transaction. The two companies expect the deal to close in the first quarter of
2013, pending regulatory approvals, the approval of Community shareholders, and
the completion of other customary closing conditions. The directors of
Community have agreed to vote their shares in favor of the merger.
Community operates nine branches along the I-81 corridor in western Virginia
and two branches in Virginia Beach, Va.
City Holding is a $2.9 billion
diversified financial holding company. Through City National Bank, it operates
73 branch locations serving communities across West Virginia, Ohio, Kentucky
and Virginia. Based upon profitability, asset quality and capital position, it was
chosen by Bank Director magazine as the third best performing bank in the U.S.
in 2011.
As of Sept. 30, City
Holding had total assets of $2.9 billion, total deposits of $2.4 billion, and
shareholders' equity of $328 million.
Community Financial has assets of
about $486.1 million. The acquisition provides City Holding Co. with an entry
into markets in the growing areas of northern Virginia.
City Holding Co. went seven years without an acquisition before it acquired
Virginia Savings Bank last year.
In a conference call on Aug. 3, Charles R. (Skip) Hageboeck, president and
CEO of City, noted that the unemployment rates in Community's service areas are
below the national average and the average household income is higher than the
national average.
"Demographically, we think, it makes very good sense," he said of
the acquisition.
Community's presence in Virginia Beach has the potential for strong loan
growth for City, Hageboeck said at the time.
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