United Bankshares said Wednesday it would buy Fed One Bancorp, Wheeling, W.Va., in a stock deal worth about $87 million, 2.06 times Fed One's book value.
Fed One has $367 million of assets and 12 branches in West Virginia and Ohio. The deal is expected to close during the fourth quarter.
"This merger will strengthen our current franchise in the northern panhandle of West Virginia and represents United's first entry into the state of Ohio," said Richard M. Adams, chairman and chief executive officer of $2.7 billion-asset United.
Mr. Adams said the combined bank would control 22% of deposits in the northern panhandle.
United is awaiting regulatory approval of its deal to buy $1 billion- asset George Mason Bankshares, Fairfax, Va. When the two deals close, United would have more than $4 billion of assets and 82 branches in four states and the District of Columbia.