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The $12.6 billion-asset United said in a press release Monday that it will pay $269 million, or $37 a share, in stock for the $1.2 billion-asset Bank of Georgetown.
November 9 -
Suffolk Bancorp in New York, which recently agreed to be sold to People's United Financial, discouraged several suitors from bidding due to concerns about concentrations of commercial real estate loans at those banks. The disclosures highlight the challenges that banks with heavy CRE exposure could face as buyers or sellers if they want to do deals.
July 27 -
The combination of higher regulatory expenses andreduced income from interchange fees is taking a toll on the profitability of banks with $10 billion to $50 billion of assets.
July 26
Costs associated with its acquisition of Bank of Georgetown contributed to a reduction in second-quarter profit at United Bankshares in Charleston, W.Va.
Net income at the $14 billion-asset company fell 8.7% to $31.8 million from a year ago.
Noninterest expense rose 12% to $65 million on higher employee benefits and compensation, occupancy costs and foreclosure costs. Expenses tied to its June acquisition of Bank of Georgetown totaled $4.5 million in the quarter. The total included $1.6 million to terminate leases for closed offices, $365,000 of severance payments and $1.9 million of other merger-related expenses that the company did not detail. United
Foreclosure expenses increased because of reductions in the fair value of properties classified as other real estate owned.
The net interest income before the loan-loss provision rose 7% to $103 million. United increased its provision by 34%, to $7.7, due to the loan growth resulting from the acquisition.
Noninterest income fell 8%, to $18, million on lower deposit service fees and income from life insurance.
