The coronavirus pandemic has not stopped US banks from pressing ahead with merger and acquisition activity.
Last week, MVB Bank’s parent company MVB Financial Corporation announced the acquisition of financial security company Paladin.
Paladin, which supplies fraud prevention services for merchants, fintechs, and other financial services players, will retain its brand name and operate as a standalone subsidiary of MVB, according to a statement issued last week.
The company’s chairman Jim Houlihan and president Jamon Whitehead will stay in their roles, MVB said.
MVB Financial Corporation’s president and CEO Larry Mazza said Paladin’s specialism “aligns well with MVB” and its fintech banking services.
“This acquisition is another creative way that MVB is turning an expense into a profit center to the benefit of our shareholders,” Mazza added.
Paladin’s Houlihan said: “We feel strongly that MVB and Paladin’s core values and principles align. The future is bright for MVB and Paladin as we forge ahead in growth via trusted partnering. The relationship with MVB will allow us to continue to support our existing and future clients in the fight against fraud.”
Meanwhile, North Carolina-based Select Bank & Trust has bought three branches from Entegra Bank, part of First Citizens Bank.
Select has taken on “the deposits and the majority of the loans, property, equipment and other selected assets” of the three branches, which are located in Franklin, Sylva, and Highlands, North Carolina.
The branches are due to open today, but only for drive-through customers as the lobbies remain closed as part of measures to reduce the spread of COVID-19.
William Hedgepeth, president and CEO of parent company Select Bancorp, said in a statement: “Our goal for some time has been to further expand the markets we serve and enter new markets. These branches will serve as an expansion of our footprint into western North Carolina.”
Select Bank & Trust recently opened a new branch in Cornelius, North Carolina and two loan production offices in Winston-Salem and Durham, North Carolina.
“Finding established locations with experienced employees in communities like these fit into our strategic plan perfectly and we are looking forward to serving these new customers,” Hedgepeth added. “It is a tough time in our nation and world right now and we hope to continue to be a source of assistance and education for our customers, footprint wide.”
Elsewhere, Citizens Financial Services – parent company of First Citizens Community Bank in Pennsylvania – completed its acquisition of MidCoast Community Bancorp on April 17.
The deal – worth an estimated $31 million – was first announced in September 2019. At that time, Randall Black, First Citizens’ president and CEO, said the acquisition would add locations in Delaware that were “robust and healthy with economic growth”, as well as boost its presence in Pennsylvania.
Finally, Evans Bancorp has received regulatory approval for its planned $34.7 million acquisition of FSB Bancorp, parent company of Fairport Savings Bank.
The deal was first announced in December 2019, and is now due to close on May 1, 2020, according to an announcement published late last week.
FSB shareholders have until 5pm Eastern time on April 24 to choose how they would like to participate in the deal, either through exchanging for Evans Bank shares or taking cash.
The combined entite will have 20 financial centers, approximately $1.8 billion in assets, $1.5 billion in deposits and $1.5 billion in loans, based on information as of September 30, 2019.