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

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%.

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United Bankshares Inc.

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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Carolina Financial Corp.

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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SPDR S&P Regional Banking ETF

US : U.S.: NYSE Arca

$ 56.92

+0.02 +0.04%

Volume: 5.33M

Dec. 9, 2019 8:00p

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S&P 500 Index

US : S&P US

3,135.96

-9.95 -0.32%

Volume: 1.60B

Dec. 9, 2019 5:16p