Bank acquisition trend could continue into 2013 - WOWK 13 Charleston, Huntington WV News, Weather, Sports

Bank acquisition trend could continue into 2013

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This past year was a busy one as far as merger and acquisition activity was concerned, particularly among mid-sized banks based in West Virginia.

West Virginia-based banks targeted smaller operations in affluent areas, particularly northern Virginia and Pittsburgh, as they sought opportunities for growth.

The question is whether that activity will continue into 2013 and whether West Virginia's mid-sized and smaller community banks will be the hunters or the prey in M&A activity.

Among the deals announced or completed this year:

In late November, WesBanco Inc. completed its acquisition of Fidelity Bancorp. of Pittsburgh. With the Fidelity acquisition, WesBanco became a multi-state bank holding company of $6.2 billion in assets with 119 locations and 111 ATMs in West Virginia, Ohio and Pennsylvania.

Peoples Bancorp Inc. said Sept. 17 it had completed its acquisition of Sistersville Bancorp Inc. in a cash deal valued at $9.8 million. Sistersville Bancorp was the holding company of First Federal Savings Bank, which has two branches in Parkersburg and Sistersville.

On Dec. 21, MVB Financial Corp. of Fairmont announced it had closed its acquisition of northern Virginia residential mortgage company Potomac Mortgage Group LLC for about $19 million in cash and MVB common shares. With the addition of PMG's annual production of mortgages, MVB's new subsidiary expects to become a $1 billion mortgage production unit at a time when MVB Bank is experiencing record mortgage lending

Meanwhile, shareholders of Community Financial Corp., based in Staunton, Va., will vote Jan. 8 on whether to accept an offer to be acquired by City Holding Co. of Charleston. On Aug. 2, City Holding announced that it had executed an agreement to acquire Community Financial Corp. of Staunton, Va., in a $25.3 million transaction. Community operates nine branches along the I-81 corridor in western Virginia and two branches in Virginia Beach, Va.