MVB Financial (MVBF) in Fairmont, W.Va., has agreed to purchase certain assets and assume certain liabilities of CFG Community Bank in Lutherville, Md.
The $782 million-asset MVB would pay approximately $30 million in cash and stock in the deal, according to a press release Wednesday. The $478 million-asset CFG would become part of MVB Bank and its three Maryland offices would assume the MVB brand.
The deal is expected to immediately add to MVB's earnings, according to the release. It would mark MVB's first expansion into Maryland.
"This acquisition is the next step in the expansion of our regional market presence for MVB Bank," MVB Chief Executive Larry Mazza said in the release. "The addition of CFG Community Bank will leverage our existing MVB footprint in the Washington, D.C./Baltimore metropolitan region, which is already well-established through our branch locations in West Virginia's eastern panhandle, as well as the headquarters and office locations of our wholly-owned subsidiary, MVB Mortgage, in the Northern Virginia area of the region."
"The sale of CFG Community Bank to a great banking franchise, MVB, will allow the successful turnaround we engineered to progress into a strong growth story," CFG Chairman Jack Dwyer said in the release.
The deal, which requires regulatory approval, is tentatively expected to close in the first quarter, according to an MVB spokeswoman.
MVB expanded into Virginia with its purchase of Potomac Mortgage Group for $19 million in cash and stock in December 2012.
MVB Financial was advised by Ambassador Financial Group and Squire Sanders.
CFG Community Bank was advised by CFG Capital Markets and Venable.