New Albany-based Your Community Bankshares has agreed to merge with and into WesBanco in a stock-cash deal worth about $221m.
As per the agreed terms of the transaction, WesBanco will exchange its common stock and cash for Your Community common stock.
The deal will expand WesBanco’s franchise by 36 offices across the Louisville, Elizabethtown, Lexington and Evansville MSAs. Following completion of the acquisition, WesBanco will operate from 177 branches across five states.
"Excluding certain one-time merger charges, the transaction is anticipated to be 6-7% accretive to earnings in 2017, and approximately 9% accretive to earnings in 2018 once anticipated cost savings are fully phased in," WesBanco said in a statement.
As part of the deal, WesBanco is expected to appoint Your Community directors Gary Libs and Kerry Stemler to its board of directors.
Your Community president and CEO Jim Rickard is expected to join in the role of market president for Kentucky and Southern Indiana at WesBanco.
The deal has already secured the nod of the board of directors of both companies. It is anticipated to close during the third or fourth quarter of 2016, subject to shareholder and regulatory approvals.
WesBanco president and CEO Todd Clossin said: "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. 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."
As of 31 March 2016, Your Community managed consolidated assets of nearly $1.6bn, deposits of $1.2bn, loans of $1bn and shareholders’ equity of $133m.