Bank of McKenney to acquire Citizens Community Bank, doubling its size

The Bank of McKenney has reached an agreement to acquire South Hill-based CCB Bankshares, the parent company of Citizens Community Bank.

The merger would double McKenney’s size. Under the agreement, CCB shareholders will receive 0.935 of a McKenney share for each share of CCB common stock. Based on a June 27 closing price, the all-stock transaction is valued at $19 million. McKenney shareholders will own 57.6 percent of the combined company, while CCB shareholders will own 42.4 percent.

After the merger, the combined bank would have about $447 million in assets, $344 million in loans and $390 million in deposits, based on financial reporting as of March 31.

The bank will be based in Prince George County with 13 offices and one loan production office in Chesterfield, Dinwiddie, Prince George, Brunswick and Mecklenburg counties and Franklin, Halifax and Vance counties in North Carolina.

James R. Black, president and CEO of CCB, will serve in the same roles of the combined bank and as a member of the board of directors. Richard M. Liles, president and CEO of McKenney, will become executive chairman of the board of directors.

The combined board will include eight members from McKenney and six members from CCB, including Norman D. Wagstaff Jr., who will become vice chairman. W.D. Allen III, the current chairman of McKenney, will remain on the board following the merger.

The transaction is expected to close in the fourth quarter, subject to shareholders’ approval, regulatory approvals and customary closing conditions.