A pending acquisition isn’t stopping a Chesapeake-based bank from increasing its presence in the Richmond market.
Monarch Mortgage, the lending arm of Monarch Bank, last month opened a new Chesterfield office in a leased 4,000-square-foot space in the Shoppes at Westchester, off Watkins Center Parkway and Midlothian Turnpike.
It’s one of two Monarch Mortgage offices in the local market, joining an Innsbrook outpost and replacing an older space it had farther south in Chesterfield off Woodlake Village Parkway near the Swift Creek Reservoir.
Monarch CEO Brad Schwartz, who grew up in Chesterfield, said he wanted a presence in a newer space in the northern section of the county.
“We wanted some more visibility,” Schwartz said, adding that the company has about two dozen employees in Richmond.
The new Midlothian office won’t wave the Monarch flag for long. The company is in the process of being purchased by Suffolk-based TowneBank in a deal valued at $220 million. The acquisition is expected to close by the end of June, when Monarch Mortgage will become part of TowneBank mortgage.
The combined banks would have about $7.5 billion in assets, including a sizable presence in Richmond. TowneBank entered the Richmond market in 2015 through the acquisition of Franklin Federal Savings Bank. Monarch has stayed away from having a bank presence here, but has had a mortgage operation in the area for several years. Schwartz said the Midlothian office will convert to a TowneBank Mortgage office, and Monarch’s Innsbrook operations will move into Towne’s office up the street.
“We’re there without a bank presence, so once we become TowneBank Mortgage, I think the bank presence will be a lift for us,” said Schwartz, who will become COO of the combined banks, with TowneBank CEO Bob Aston retaining that top title.
The Shoppes at Westchester is owned by local developer The Rebkee Company. It’s a 35-acre, multi-phase mixed-use development planned for a total of 225,000 square feet. It sits next to Westchester Commons.