$35M BofVA deal is sealed

The Bank of Virginia branch at 10501 Patterson Ave.

The Bank of Virginia branch at 10501 Patterson Ave.

The Richmond market’s third bank acquisition of 2016 is complete.

Midlothian-based Bank of Virginia and its parent company Cordia Bancorp have been absorbed by First Citizens Bank & Trust, a $31 billion bank out of Raleigh.

The deal was consummated at 11:59 p.m. on Aug. 31. The $35 million all-cash acquisition gave Cordia stockholders $5.15 for each Cordia share they owned.

First Citizens woke up this morning with an immediately larger presence in the Richmond market by adding Bank of Virginia’s six local branches to its two existing Richmond locations in Short Pump and Midlothian.

It also gives First Citizens a significant bump in its share of local deposits. The company controlled about $91 million in local deposits as of last year between its two area branches, according to the most recent available figures from the FDIC. Adding Bank of Virginia’s $286 million in deposits brings First Citizens local total to about $377 million, a bump that will likely shoot into the top 15 for Richmond market share.

Bank of Virginia had $354 million in total assets.

Frank Holding Jr., First Citizens’ current CEO, will continue in that role in the combined company.

Neither company has said what role Cordia CEO Ed Barham might have in the organization after the deal closes.

Two other locally based banks have closed mergers and acquisitions this year. Richmond-based Xenith Bank’s $175 million combination into Hampton Roads Bankshares created a $3 billion institution that’s headquartered in Richmond. Park Sterling Bank’s $87 million purchase of Glen Allen-based First Capital Bank closed at the first of the year. That deal has since led to a legal dispute between First Capital’s former CEO and Park Sterling.

The Bank of Virginia branch at 10501 Patterson Ave.

The Bank of Virginia branch at 10501 Patterson Ave.

The Richmond market’s third bank acquisition of 2016 is complete.

Midlothian-based Bank of Virginia and its parent company Cordia Bancorp have been absorbed by First Citizens Bank & Trust, a $31 billion bank out of Raleigh.

The deal was consummated at 11:59 p.m. on Aug. 31. The $35 million all-cash acquisition gave Cordia stockholders $5.15 for each Cordia share they owned.

First Citizens woke up this morning with an immediately larger presence in the Richmond market by adding Bank of Virginia’s six local branches to its two existing Richmond locations in Short Pump and Midlothian.

It also gives First Citizens a significant bump in its share of local deposits. The company controlled about $91 million in local deposits as of last year between its two area branches, according to the most recent available figures from the FDIC. Adding Bank of Virginia’s $286 million in deposits brings First Citizens local total to about $377 million, a bump that will likely shoot into the top 15 for Richmond market share.

Bank of Virginia had $354 million in total assets.

Frank Holding Jr., First Citizens’ current CEO, will continue in that role in the combined company.

Neither company has said what role Cordia CEO Ed Barham might have in the organization after the deal closes.

Two other locally based banks have closed mergers and acquisitions this year. Richmond-based Xenith Bank’s $175 million combination into Hampton Roads Bankshares created a $3 billion institution that’s headquartered in Richmond. Park Sterling Bank’s $87 million purchase of Glen Allen-based First Capital Bank closed at the first of the year. That deal has since led to a legal dispute between First Capital’s former CEO and Park Sterling.

Your subscription has expired. Renew now by choosing a subscription below!

For more informaiton, head over to your profile.

Profile


SUBSCRIBE NOW

 — 

 — 

 — 

TERMS OF SERVICE:

ALL MEMBERSHIPS RENEW AUTOMATICALLY. YOU WILL BE CHARGED FOR A 1 YEAR MEMBERSHIP RENEWAL AT THE RATE IN EFFECT AT THAT TIME UNLESS YOU CANCEL YOUR MEMBERSHIP BY LOGGING IN OR BY CONTACTING [email protected].

ALL CHARGES FOR MONTHLY OR ANNUAL MEMBERSHIPS ARE NONREFUNDABLE.

EACH MEMBERSHIP WILL ONLY FUNCTION ON UP TO 3 MACHINES. ACCOUNTS ABUSING THAT LIMIT WILL BE DISCONTINUED.

FOR ASSISTANCE WITH YOUR MEMBERSHIP PLEASE EMAIL [email protected]




Return to Homepage

POSTED IN Banking

Editor's Picks

Subscribe
Notify of
guest

0 Comments
Inline Feedbacks
View all comments