Two West Virginia community banks have agreed to a merger of equals that would create a $287 million-asset company.
Potomac Valley Bank in Petersburg is to be merged into Moorefield-based South Branch Valley Bancorp, a two-bank holding company. Terms of the deal have not yet been negotiated.
South Branch has $193 million of assets and five offices in eastern West Virginia. It is organizing a third bank subsidiary, to be based in Winchester, Va., that it hopes to open in May. Potomac Valley Bank has two branches and $94 million of assets.
The deal would keep all the banks as separately operated subsidiaries of a holding company that has yet to be named. The merger is expected to close this year.