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Nov. 18, 2019, 7:03 a.m. EST

United Bankshares to buy Carolina Financial for a 16% premium, in a deal valued at $1.1 billion

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By Tomi Kilgore

United Bankshares Inc. /zigman2/quotes/202436974/composite UBSI -0.66% announced Monday a deal to buy Carolina Financial Corp. /zigman2/quotes/202483151/composite CARO -1.14% in a stock deal valued at $1.1 billion. Under terms of the deal, each Carolina Financial share will be exchanged for 1.13 United Bankshares shares. Based on Friday's stock closing prices, that values Charleston, South Carolina-based Carolina Financial shares at $44.65, or a 15.7% premium, and implies a market capitalization of about $993.4 million. The deal will result in a bank with combined assets of $25 billion. Shares of the regional banks are still inactive in premarket trading. Washington, D.C.-based United Bankshares' stock has rallied 27.0% year to date and Carolina Financial shares have run up 30.4%, while the SPDR S&P Regional Banking ETF /zigman2/quotes/200108291/composite KRE +0.04% has climbed 19.6% and the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.32% has advanced 24.5%.

/zigman2/quotes/202436974/composite
US : U.S.: Nasdaq
$ 37.72
-0.25 -0.66%
Volume: 375,222
Dec. 9, 2019 4:00p
P/E Ratio
14.80
Dividend Yield
3.71%
Market Cap
$3.86 billion
Rev. per Employee
$380,375
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/zigman2/quotes/202483151/composite
US : U.S.: Nasdaq
$ 41.74
-0.48 -1.14%
Volume: 151,481
Dec. 9, 2019 4:00p
P/E Ratio
15.17
Dividend Yield
0.86%
Market Cap
$939.48 million
Rev. per Employee
$254,965
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/zigman2/quotes/200108291/composite
US : U.S.: NYSE Arca
$ 56.92
+0.02 +0.04%
Volume: 5.33M
Dec. 9, 2019 8:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,135.96
-9.95 -0.32%
Volume: 1.60B
Dec. 9, 2019 5:16p
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