Carolina Financial Corp., the Charleston parent of CresCom Bank, has agreed to be acquired by United Bankshares Inc. in an all-stock deal valued at about $1.1 billion.

The companies announced the merger agreement today. Carolina Financial shareholders would receive 1.13 shares of United stock for each share they own, according to a joint news release.

Based on United’s closing price of $39.51 on Friday, that is worth $44.65 a share, a 15.7% market premium, according to an investor presentation United filed with the Securities and Exchange Commission. The presentation valued the deal at 2.07 times Carolina Financial’s tangible book value.

United is the parent of United Bank. Its principal executive offices are in Charleston, West Virginia, according to its SEC filing. The release describes United Bank as the largest community bank headquartered in the Washington, D.C., area.

The combined company would have about $25 billion in assets and more than 200 locations. It would rank among the 35 largest U.S. banks by market value, the companies said.

“Our companies share complementary cultures, a commitment to our customers, and a focus on serving our communities,” said Richard M. Adams, United’s chairman and CEO. “This transaction represents a significant step towards continuing to grow United’s presence in the Carolinas.”

What happens to CresCom

Carolina Financial would merge into United, and CresCom would merge into United Bank, with United and United Bank as the surviving companies, the release said.

Carolina Financial CEO Jerry Rexroad would join United’s board and become an executive officer. He would also be chairman of United’s Carolinas franchise and would remain chairman of Crescent Mortgage Co., CresCom’s Atlanta-based mortgage subsidiary.

“We believe that United is the very best partner to create the most trusted community bank in the communities we serve,” Rexroad said in the release. He said Carolina Financial is “partnering with a bank that has a strong community banking culture, along with the resources of a larger institution.”

The presentation said key senior managers of Carolina Financial would be kept on. It assumed cost savings of 25%. Neither the presentation nor the release said how many jobs or branches might be affected.

Carolina Financial shareholders would own about 22% of the combined company.

A Charleston bank that grew by buying

Carolina Financial was organized in February 1997 as a bank holding company, according to its annual report. It is based at 288 Meeting St. in downtown Charleston and had 773 employees in February.

The company has grown through acquisitions. It bought Congaree Bancshares in 2016, Greer Bancshares in March 2017 and First South Bancorp, the parent of First South Bank, in November 2017, the annual report says.

At Sept. 30, Carolina Financial had about $3.98 billion in assets and 62 CresCom Bank locations in North Carolina and South Carolina. Its pending purchase of Carolina Trust BancShares, which has about $623 million in assets and whose Carolina Trust Bank has 11 full-service offices north and west of Charlotte, is expected to close before the end of 2019.

Carolina Financial reported third-quarter net income of $16.6 million, or 74 cents a diluted share, up 9.3% from a year earlier.

United’s push south

United had about $19.8 billion in assets at Sept. 30. United Bank and its George Mason Mortgage unit have 138 full-service banking locations and 16 mortgage offices in Virginia, Maryland, Washington, D.C., North Carolina, South Carolina, Pennsylvania, West Virginia and Ohio, according to the release.

United entered the North and South Carolina markets in 2017. The Carolina Financial purchase would be the 32nd acquisition under United’s current leadership, the release said.

The boards of both companies approved the agreement unanimously. The deal needs approval from shareholders of both companies and from regulators, and it is expected to close in the second quarter of 2020.

Sandler O’Neill & Partners advised United, and Raymond James & Associates advised Carolina Financial. Nelson Mullins Riley & Scarborough was Carolina Financial’s legal counsel.