Front and side views of Essex Bank’s planned location in Annapolis, Md. (Via Google Maps)
A local bank is looking to Maryland for the next step of its expansion.
Essex Bank and its Glen Allen parent company, Community Bankers Trust Corp., are working a deal to acquire a branch in Annapolis, Md.
The 2,100-square-foot location is owned by PNC Bank, according to Annapolis real estate records. The property was most recently for sale for $1.19 million, according to its Loopnet listing.
Should the deal close, it would be Essex’s 25th branch, and it would expand the $1.1 billion bank’s presence in the suburban market east of Washington.
“It’s the first time we’ve done anything on the expansion front in over four years,” said Rex Smith, the bank’s president and chief executive.
The last time Essex opened a new branch was when it acquired the assets of two failed banks in Georgia and Maryland.
It entered the Maryland market in early 2009 by acquiring the assets of the former Suburban Federal Savings Bank, which the FDIC shut down.
The bank assumed approximately $303 million in deposits and purchased about $362 million in loans in the deal with the FDIC. That purchase also left it with its two branches in Crofton, Md. and Arnold, Md.
Smith said the market in that part of Maryland has opened up after larger banks such as M&T and PNC expanded there by gobbling up smaller community banks.
“The demographics are really strong,” he said, adding that population growth and an increase in the area’s per capita income are part of what has enticed the bank.
Essex will look to open more branches in the area, Smith said.
“We really are excited about what they used to call the Golden Crescent,” he said, referring to the name given to the stretch of interstates 64 and 95 that runs from Hampton Roads up through Northern Virginia.
The confidence to expand marks another positive step for Essex and Community Bankers Trust.
In December, Essex was released from a written agreement with state and federal regulators, making it the first local financial institution since the recession to work its way out of such an agreement.
Community Bankers Trust reported a profit of $5.5 million in 2012, a significant recovery after losses of $20 million and $29 million in 2010 and 2011, respectively.
It also was able to get current on its dividends owed to the U.S. Treasury from its participation in the TARP Capital Purchase Program. Smith has said the company is working toward buying its way out of its $17.6 million TARP commitment.
Essex is waiting to close on the purchase of the Annapolis branch and must receive regulatory approval for the expansion. The property has a vault and a teller counter and won’t require significant renovations, Smith said.
Smith would not disclose the bank’s offering price for property. He said the company hopes to be open in the new location by summer.
Front and side views of Essex Bank’s planned location in Annapolis, Md. (Via Google Maps)
A local bank is looking to Maryland for the next step of its expansion.
Essex Bank and its Glen Allen parent company, Community Bankers Trust Corp., are working a deal to acquire a branch in Annapolis, Md.
The 2,100-square-foot location is owned by PNC Bank, according to Annapolis real estate records. The property was most recently for sale for $1.19 million, according to its Loopnet listing.
Should the deal close, it would be Essex’s 25th branch, and it would expand the $1.1 billion bank’s presence in the suburban market east of Washington.
“It’s the first time we’ve done anything on the expansion front in over four years,” said Rex Smith, the bank’s president and chief executive.
The last time Essex opened a new branch was when it acquired the assets of two failed banks in Georgia and Maryland.
It entered the Maryland market in early 2009 by acquiring the assets of the former Suburban Federal Savings Bank, which the FDIC shut down.
The bank assumed approximately $303 million in deposits and purchased about $362 million in loans in the deal with the FDIC. That purchase also left it with its two branches in Crofton, Md. and Arnold, Md.
Smith said the market in that part of Maryland has opened up after larger banks such as M&T and PNC expanded there by gobbling up smaller community banks.
“The demographics are really strong,” he said, adding that population growth and an increase in the area’s per capita income are part of what has enticed the bank.
Essex will look to open more branches in the area, Smith said.
“We really are excited about what they used to call the Golden Crescent,” he said, referring to the name given to the stretch of interstates 64 and 95 that runs from Hampton Roads up through Northern Virginia.
The confidence to expand marks another positive step for Essex and Community Bankers Trust.
In December, Essex was released from a written agreement with state and federal regulators, making it the first local financial institution since the recession to work its way out of such an agreement.
Community Bankers Trust reported a profit of $5.5 million in 2012, a significant recovery after losses of $20 million and $29 million in 2010 and 2011, respectively.
It also was able to get current on its dividends owed to the U.S. Treasury from its participation in the TARP Capital Purchase Program. Smith has said the company is working toward buying its way out of its $17.6 million TARP commitment.
Essex is waiting to close on the purchase of the Annapolis branch and must receive regulatory approval for the expansion. The property has a vault and a teller counter and won’t require significant renovations, Smith said.
Smith would not disclose the bank’s offering price for property. He said the company hopes to be open in the new location by summer.