A Glen Allen bank has expanded its reach into Maryland after closing a deal with another big name in Richmond banking.
Essex Bank purchased a branch in Bowie, Md., from Capital One in a deal that was finalized Monday. It gives Essex a seventh location in Maryland, a market it first entered by acquiring the assets of a failed bank in 2009.
The 3,000-square-foot property at 6143 High Bridge Road was one of several Capital One Bank branches the company put up for sale in that market after an acquisition.
Rex Smith, CEO of Essex and its Community Bankers Trust parent company, said his bank is putting about $1.3 million into the new location, including acquisition costs and renovations.
Smith said Essex’s investment in the region will continue.
“It’s a great market up there, and we want to keep expanding,” he said. “We like what’s going on in that whole area.”
The new location replaces a branch Essex closed in September, about six miles away in Landover Hills. It joins Essex branches in Baltimore, Anne Arundel, Montgomery and St. Mary’s counties and a second in Prince George’s County.
Essex has worked to grow its foothold in Maryland since it acquired the failed Suburban Federal Savings Bank from the FDIC five years ago. Essex had nearly $213 million in deposits in its seven open Maryland branches as of June 30, according to FDIC records. That’s almost a quarter of Essex’s $921 million in total deposits.
Essex already has approval from regulators to open the Bowie branch, and Smith said it will look to be up and running by mid-December.
From Bowie, Smith said he’s looking at expansion west through Maryland and into Northern Virginia. Essex already has a loan production office in Fairfax, Va., and would look to turn that into a full branch in the future.
“The battle plan is connect the Beltway,” he said.
The $1.12 billion bank has another 14 branches in Virginia around the Richmond market, where Smith said more growth could be in the works.
“We’re not going to give up on the home turf either,” he said.
Essex is in the midst of renovating another new branch in Bon Air, its first in that section of the Southside. It bought the property from Bank of Hampton Roads earlier this year and plans to open in mid-January, Smith said.