Bank Of Mount Hope Announces Merger

WEST VIRGINIA (WOAY) – Allegheny Bancshares, Inc. (“Allegheny”) and Mount Hope Bankshares, Inc. (“Mount Hope”) announced the signing of a definitive merger agreement between Allegheny and Mount Hope.

Pursuant to the terms of the merger agreement, Allegheny will acquire all of the outstanding shares of common stock of Mount Hope in exchange for cash in the amount of $58.00 per share. Total merger consideration received by Mount Hope shareholders is subject to an adjustment if Mount Hope’s adjusted shareholders’ equity as of the effective date of the merger is less than the target mutually determined by the parties. The aggregate consideration in the transaction is approximately $21.775 million.

The transaction has been unanimously approved by each company’s board of directors and is expected to close in 2019, pending regulatory approvals and the approval of Mount Hope’s shareholders. Following consummation of the merger, Mount Hope’s wholly-owned subsidiary Bank of Mount Hope, Inc. will be consolidated with Allegheny’s bank subsidiary, Pendleton Community Bank, Inc.

Allegheny’s President and Chief Executive Officer, William A. Loving, Jr., said “We are excited with the opportunity to join our company with The Bank of Mount Hope whose culture and strong performance will only further strengthen our company, expand our footprint and provide more banking options for customers of Pendleton Community Bank and Bank of Mount Hope.  Banking is a people business….a business of relationships.  We look forward to working with Mount Hope’s management and staff to build upon the relationships we have individually created; and, collectively, building into the communities we serve.  We look forward to welcoming Mount Hope’s customers as we work toward a seamless transition.”

Mount Hope’s President and Chief Executive officer, Ben M. Susman, said “This merger will provide resources to allow for continued growth in the marketplace.  It is a win-win for our shareholders and our customers.  This merger will provide our customers with enhanced banking products and services while maintaining a community banking option.  We were impressed with the leadership and vision of Pendleton.  This transaction will be good for Raleigh and Fayette Counties.”

Mount Hope was advised by the investment banking firm of ProBank Austin and the law firm Bowles Rice LLP. Allegheny was advised by the investment banking firm of Vining Sparks Community Bank Advisory Group and was represented by the law firm Jackson Kelly PLLC.

About Allegheny

Allegheny is a $320 million bank holding company headquartered in Franklin, West Virginia. Pendleton Community Bank, Inc., an independent community bank since 1925, currently has four full-service financial centers located in the West Virginia communities of Franklin, Moorefield, Marlinton, Petersburg, and two financial centers and mortgage division in the Virginia community of Harrisonburg. In addition, the Bank has a loan production office in Wardensville, West Virginia.

About Mount Hope

Mount Hope, a bank holding company headquartered in Mount Hope, West Virginia, reported approximately $124 million in assets as of March 31, 2019, and operates three community banking offices in Mount Hope, Beckley and Oak Hill, West Virginia, through its subsidiary, Bank of Mount Hope, Inc.

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