Investment Banking - City Holding Company

Transactions | Banking

Client: City Holding Company
Industry: Banking
Transaction Type: Mergers & Acquisitions
Role: Buy-Side Advisor

  • Headquartered in Charleston, West Virginia, City Holding Company (NASDAQ: CHCO) is the holding company of City National Bank of West Virginia, a full-service community bank that operates 82 locations throughout Kentucky, Ohio, Virginia and West Virginia.  As of March 31, 2015, City had assets of $3.6 billion, deposits of $2.9 billion and loans of $2.6 billion.
  • Headquartered in Lexington, Kentucky, Financial Holdings, Inc. (“FHI”) is the holding company of American Founders Bank (“AFB”).  As of March 31, 2015, FHI had assets of $293 million, deposits of $256 million and loans of $201 million.  FHI has five branches, two in Louisville and three in Lexington.  City is acquiring the Lexington branches.
  • As of May 15, 2015, AFB’s Lexington-based branches had deposits of $164.2 million, of which $93.5 million was in core deposits (excluding time and sweep deposits).
  • Under the terms of the agreement, City will pay a deposit premium of 5.5% on non-time deposits, excluding repurchase agreements. In addition, City will pay a 1.0% premium on loan balances acquired.  Based on May 15, 2015 balances, the aggregate premium would have been approximately $6.4 million.
  • In connection with the sale, City will also acquire $125 million in performing loans.
  • Boenning served as financial advisor to City Holding Company.