Bank of McKenney and CCB Bankshares, Inc. have announced plans of a merger. CCB and its subsidiary bank will merge into McKenney to create a combined entity with about $447 million in assets, $344 million in loans, and $390 million in deposits.
The combined bank will be headquartered in Prince George County, Virginia, with 13 full-service offices and one loan production office across Chesterfield, Dinwiddie, Prince George, Brunswick and Mecklenburg counties in Virginia, and Franklin, Halifax and Vance counties in North Carolina. The combined management team will work together to rename the bank upon completion of the transaction.
The merger creates a larger and stronger institution with a significantly higher lending limit, expanded product offering and access to new markets, according to a news release.
“We are excited about our merger with CCB,” Richard M. Liles, president and CEO of McKenney, said in a statement. “The transaction will double the size of the bank and increase our legal lending limit. Our combined presence, coupled with our shared commitment to providing premier service, uniquely positions our franchise to grow as the community bank of choice in the markets we serve. We believe that the merger will also provide significant financial benefits for our shareholders.”
James R. Black, president and CEO of CCB, said the merger “is a tremendous opportunity to have our neighboring community banks with similar cultures and philosophies join together in this transformational merger.”
Under the terms of the merger agreement, which was unanimously approved by the Boards of Directors of both entities, CCB shareholders will receive a fixed exchange ratio of 0.935 of McKenney shares in exchange for each share of CCB common stock. Based on the closing price of McKenney common stock on June 27, the transaction represents a value of $12.52 per share of CCB common stock, or $19.0 million in aggregate. McKenney shareholders will own 57.6 percent of the combined entity and CCB shareholders will own 42.4 percent. The all-stock transaction is intended to qualify as a tax-free reorganization for CCB shareholders.
Following completion of the transaction, Black will serve as president and CEO and a member of the Board of Directors while Liles will serve as executive chairman. The transaction is expected to be completed in the fourth quarter of 2017.