West Virginia-based WesBanco, Inc. has announced plans to acquire Your Community Bankshares, Inc.
"The merger with Your Community meaningfully expands WesBanco's franchise into attractive markets in Kentucky and Southern Indiana, and a top ten market share in the Louisville MSA,” said Todd F. Clossin, president and CEO of WesBanco, in a release on the merger. “[Your Community president and CEO] Jim Rickard and his management team have built a high performing commercial bank with low cost deposits and a strong lending team. We believe we can provide customers of Your Community with a broader array of banking services, including expanded commercial and mortgage lending capabilities as well as trust and wealth management services."
The merger agreement calls for the exchange of a combination of WesBanco common stock and cash for Your Community common stock. Your Community shareholders will receive .964 of a share of WesBanco common stock and $7.70 per share in exchange for each share of Your Community common stock, for a total value of roughly $39.05 per share, or $221 million in total, based on WesBanco’s market close price of $32.52 on May 2.
At the end of March, WesBanco recorded consolidated assets of approximately $8.6 billion and deposits of $6.1 billion, and Your Community, headquartered in New Albany, Indiana, had $1.6 billion in consolidated assets and $1.2 billion in deposits.
The transaction will expand WesBanco’s franchise by 36 offices, located throughout the Kentucky MSAs of Lexington, Louisville and Elizabethtown, and in the Evansville, Indiana, MSA. When the merger is complete, WesBanco will have a total of 177 branch locations in five states.
As a result of the merger, Rickard will join WesBanco as market president for Kentucky and southern Indiana. Your Community directors Gary L. Libs and Kerry M. Stemler also will be added to WesBanco’s board of directors.
The transaction, which is subject to the approval of banking regulatory authorities and Your Community shareholders, is expected to be completed during the third or fourth quarter of 2016.