United Bankshares and Carolina Financial Corporation announced that they will merge their operations. As part of the agreement, Carolina shareholders will receive 1.13 of United’s shares per share they own.

This transaction value stands at about $1.1 billion and boards of both companies approved the merger.

The combined entity will become one of 35 largest banks in the US based on market capitalization. After the combination, United Bankshares will have 200 locations and about $25 billion in assets.

United Bankshares is the parent company of United Bank and Carolina Financial is the parent of CresCom Bank. In 2018, First South Bank was acquired and became CresCom Bank.

“This transaction represents a significant step towards continuing to grow United [Bankshares]’s presence in the Carolinas,” said United Bankshares CEO and chairman Richard Adams.

In 2017, United Bankshares entered the markets of North and South Carolina. It has presence in seven states and District of Columbia.

Carolina Financial CEO Jerry Rexroad will join the board of United Bankshares. He will act as director and executive officer. Rexroad will also serve as chairman of United’s Carolinas division, and will continue his role as chairman of CresCom’s Crescent Mortgage.

The merger will close in the second quarter of next year and is subject customary closing conditions. The combination also has to secure regulatory clearance. Shareholders of both companies also need to approve the transaction.

Following closing of the deal, Carolina Financial will merge into United Bankshares and CresCom – into United Bank. As a result, United Bankshares and United Bank will become the surviving companies.

Sandler O’Neill & Partners acted as financial adviser to United Bankshares, while Bowles Rice provided legal advice. Carolina Financial was advised by Raymond James & Associates on the financial matters and Nelson Mullins Riley & Scarborough served as legal counsel.