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 +1.33% announced Monday a deal to buy Carolina Financial Corp. 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 +1.07% has climbed 19.6% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.59% has advanced 24.5%.

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United Bankshares Inc.

US : U.S.: Nasdaq

$ 26.75

+0.35 +1.33%

Volume: 379,761

July 6, 2020 4:00p

P/E Ratio

11.53

Dividend Yield

5.23%

Market Cap

$3.43 billion

Rev. per Employee

$380,375

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SPDR S&P Regional Banking ETF

US : U.S.: NYSE Arca

$ 37.00

+0.39 +1.07%

Volume: 9.29M

July 6, 2020 4:00p

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S&P 500 Index

US : S&P US

3,179.72

+49.71 +1.59%

Volume: 2.38B

July 6, 2020 5:22p