One of the larger newcomers to the Richmond banking market has made its biggest local splash to date.
Charlotte, N.C.-based Park Sterling Bank announced this morning it will acquire First Capital Bank, headquartered in Glen Allen, in a transaction valued at $82.5 million.
The deal, which calls for Park Sterling’s holding company to acquire First Capital’s holding company, would instantly give Park Sterling a larger foothold in Richmond to rival or surpass many other local banks. It would take on First Capital’s eight local branches, adding to Park Sterling’s two Richmond offices, one of which recently opened along the competitive stretch of Patterson Avenue.
The combination will make Richmond Park Sterling’s second largest market based on deposits, second only to its home territory of Charlotte.
“The partnership helps us achieve our strategic goal of building out our Richmond presence by significantly enhancing our local branch network and adding talented bankers and leadership to our exceptional local team,” Park Sterling CEO Jim Cherry said in a prepared statement.
First Capital CEO John Presley will transition into a consulting role after the deal closes, according to the release.
“The combined company will be a dominant player in the Richmond market,” Presley said in the release.
The merger has been approved by the boards of each company. Closing is expected in the first quarter of 2016. The combined banks would have $3.1 billion in total assets and 60 offices in the Carolinas, Virginia and Georgia.
First Capital common stockholders will have the right to receive either $5.54 in cash or 0.77 shares of Park Sterling stock for each First Capital share they hold. That’s subject to a limitation that the consideration of 30 percent cash and 70 percent stock.
Park Sterling is planning a conference this morning to discuss the deal.
Stay tuned to BizSense for more.