Fairmont-based MVB Financial Corp., parent company of MVB Bank, announced Wednesday it will acquire Maryland-based CFG Community Bank in a $30 million purchase designed to expand its footprint in the Baltimore metro area.
MVB will pay $30 million in cash and stock to purchase the assets and assume certain liabilities from CFG Community Bank, which operates out of offices in Lutherville, Baltimore's Fells Point inner harbor region and Annapolis.
This is the second major acquisition for the Fairmont bank company in less than a year. Last December, MVB announced plans to acquire residential mortgage firm Potomac Mortgage Group of Fairfax, Va. for $19 million.
Larry Mazza, chief executive officer of MVB Financial Corp., has said the 14-year-old company is pursuing an aggressive "growth with quality" strategy to expand its operations.
The company already has nine branches -- six in North-Central West Virginia along the Interstate 79 corridor and three in the Eastern Panhandle - and is currently building a $6 million, four-story office building in Charleston to serve as a base for operations in the Kanawha Valley.
The Charleston location will serve as a gateway to southern West Virginia and surrounding parts of Kentucky, Ohio and Virginia.
Mazza said the CFG purchase will help build the company's footprint in the Baltimore and Washington, D.C. area, which lies between its existing operations in the Eastern Panhandle and northern Virginia.
"This acquisition is the next step in the expansion of our regional market presence for MVB Bank," Mazza said in a press release.
Mazza called CFG Community Bank "one of the most profitable community banks in the country."
In addition to being a community bank, CFG also maintains a Capital Funding Group healthcare financing business. CFG chairman Jack Dwyer said the acquisition by MVB would give that division a renewed focus and enhance and grow its profitability.
"Combining those accomplishments with MVB's growth strategy, operational efficiencies, history and footprint is a very natural fit which will allow us to offer superior service and technology clients are accustomed to receiving from both organizations," Mazza said.
The deal will require regulatory approval before it closes. Once it does, CFG operations will take on the MVB Bank brand name. Bank officials expect the transaction will be immediately accretive to MVB's earnings once it is complete.
Contact writer Jared Hunt at busin...@dailymail.com or 304-348-4836.