United Bank to Buy Bank of Georgetown

United Bankshares, Inc. (“UBSI”) (NASDAQ: UBSI) announced Monday that it is buying the Bank of Georgetown.

The bank said it is signing a definitive merger agreement with Bank of Georgetown, a privately held community bank headquartered in Washington, D.C.

The bank is headquartered in Georgetown.

Bank of Georgetown has $1.2 billion in assets with 11 branches and 3 business development offices throughout Washington, D.C., Montgomery County and Northern Virginia, United Bank noted.

Bank of Georgetown will merge into UBSI’s Virginia chartered bank, United Bank, the largest community bank headquartered in the D.C. Metro region.

Upon completion of the deal, United Bank will have assets of approximately $8.5 billion and will hold the #1 deposit market share of all community banks in the Washington, D.C. MSA. UBSI’s assets will grow to approximately $13.8 billion after the transaction with a projected market capitalization of approximately $3.2 billion based on UBSI’s closing price on Nov. 6, 2015, the company noted. Based upon this projected market capitalization, UBSI would be the 41st largest banking company in the country.

The transaction, which has been unanimously approved by both UBSI’s and Bank of Georgetown’s Boards of Directors, is expected to close in mid-2016, pending regulatory approvals and the approval of Bank of Georgetown’s shareholders.

United Bank CEO and Chairman Richard Adams stated: “We are very excited about our partnership with Bank of Georgetown. It is one of the most valuable of the remaining independent banking franchises in the nation’s capital MSA, which happens to be one of the best markets in the USA. 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. This is an in-market transaction, it makes sense financially, and it is a great fit culturally.”

Michael P. Fitzgerald, Bank of Georgetown’s Chairman, President and Chief Executive Officer said: “We have respected United as a consistently high performing competitor and we are absolutely delighted to have this opportunity to join forces with them. Our customers and the community will benefit from a broader array of products and services, and continue to receive excellent relationship service. Our shareholders, many of whom have supported Bank of Georgetown for over 10 years, will be able to realize liquidity and earn a competitive dividend. We believe this partnership is an outstanding reward for their commitment and that the similar quality of people and culture coming together will further advance Washington’s preeminent community bank.”

UBSI currently has $12.6 billion in assets and 129 full-service offices in Washington, D.C., Virginia, Maryland, Ohio, Pennsylvania, and West Virginia. This will be the current administration’s 30th acquisition, and the 9th in the Washington, D.C. MSA.

Sandler O’Neill & Partners, L.P. served as financial advisor and Bowles Rice LLP provided legal counsel to United Bankshares, Inc.

Keefe, Bruyette & Woods, Inc. served as financial advisor and Covington & Burling LLP served as legal counsel to Bank of Georgetown.