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Bank deal headed for the finish line

Michael Schwartz March 16, 2017 0

Virginia Commonwealth Bank and Bank of Lancaster will soon close a $29 million merger deal.

Virginia Commonwealth Bank and Bank of Lancaster will soon close a $29 million merger deal.

A local bank merger now has a clear path to the closing table.

Shareholders of Petersburg-based Virginia Commonwealth Bank and Kilmarnock-based Bank of Lancaster on Wednesday voted in favor of a pending deal that will create a combined $800 million institution, to be headquartered in Richmond.

It was the final approval needed to greenlight the deal, valued around $29 million, following a recent thumbs up from state and federal regulators.

VCB chief executive Frank Scott, who will serve as chairman of the combined holding company and president of the combined bank, said the deal is expected to close April 1.

The combined bank will operate under the Virginia Commonwealth Bank name and will have a territory of 19 branches – from the Northern Neck through Richmond, and down to the Tri-Cities. Bank of Lancaster’s parent company Bay Banks of Virginia will be the surviving name for the holding company.

Bank of Lancaster CEO Randy Greene will serve as vice chairman and CEO of the combined bank and holding company.

The deal already caught the eye of at least one veteran banker interested in joining the VCB ranks.

State regulators last month also approved the pending merger of Reston-based Access National Bank and Middleburg Bank, another Northern Virginia institution that recently has increased its Richmond presence.

That deal, expected to close in the second quarter, will create a combined bank with $2.7 billion in assets. The deal includes Middleburg Trust Co., Middleburg’s wealth management operation, which is headquartered on Forest Avenue in Richmond.

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