Strategic Merger Reshapes Regional Banking Landscape in Southeast

City Holding Company has successfully finalized its acquisition of Citizens Commerce Bancshares, concluding a transaction announced six months prior in October 2022. The deal formally took effect on March 10, 2023, marking a significant consolidation in the regional banking sector.

The stock-based transaction valued Citizens Commerce Bancshares at approximately $62.1 million, representing $15.37 per share. Under the exchange terms, each Citizens share converted into 0.1666 shares of City common stock. This structure allowed for a seamless integration of Citizens Commerce Bank into City National Bank of West Virginia, with Citizens previously headquartered in Versailles, Kentucky.

Combined Entity Strengthens Market Position

The merged institution commands substantial market presence with consolidated assets reaching $6.2 billion as of December 31, 2022. The combined operation reflects $5.2 billion in customer deposits and $3.9 billion in gross loans. This expansion reinforces City’s competitive standing in the Lexington, Kentucky metropolitan statistical area, a strategically important market for growth-focused institutions.

Charles R. “Skip” Hageboeck, President and Chief Executive Officer of City, emphasized continuity in service delivery: “The transition preserves operational consistency for Citizens customers while granting them access to City’s broader product and service ecosystem. Notably, we retained significantly more operational staff than projected—approximately a dozen administrative and operational personnel from Citizens now fill vacant positions within City’s existing structure.”

Operational Integration Details

The integration maintained City’s community banking philosophy, with leadership committed to sustaining strong local market engagement. Citizens customers continue working with familiar personnel while benefiting from expanded financial capabilities and geographic reach across City’s 99-branch network.

City itself operates as a broader regional platform with substantial assets. Prior to this acquisition, City reported $5.9 billion in total assets, $4.9 billion in deposits, and $3.6 billion in gross loans as of year-end 2022. The organization serves individuals, businesses, and industries across West Virginia, Kentucky, Virginia, and Ohio through its established distribution network.

The transaction benefited from robust advisory support, enabling both parties to negotiate terms aligned with shareholder interests. For further details regarding combined operations, branch locations, and service offerings, stakeholders can visit www.bankatcity.com.