A Midlothian-based bank is combining two of its branches in Hanover County in a bid to realign resources and continue its recent momentum.
Village Bank will close its branch at 6127 Mechanicsville Turnpike on Nov. 1 and consolidate the location into the nearby outpost about 4 miles west at 8051 Mechanicsville Turnpike.
Village CEO Bill Foster said in an email last week the surviving branch will be remodeled and have a drive-thru installed, with work expected to be completed this month.
“That is a busy and growing branch,” Foster said.
Each of the Mechanicsville Turnpike locations had about $30 million in deposits as of June 2015, the most recent figures on file with the FDIC.
Foster said the 8051 Mechanicsville Turnpike branch is closer to the business district of that stretch of the county and money saved from consolidation can be put toward other uses.
“This is not a cost cutting move,” he said. “It allows us to invest resources in other initiatives. We are growing loans, deposits, assets, employees and earnings.”
The $419 million bank has worked its way back to continued profitability after lingering effects from the recession. It has turned a profit in five consecutive quarters and is in the black by $700,000 through the first half of this year, following a $6.5 million profit for the full year 2015.
In a testament to its turnaround, Village last month was released from its so-called written agreement, a stringent pact it entered into with the Federal Reserve in 2012 in the wake of the downturn.
It’s also tried to boost commercial lending, recently landing a deal to finance a townhouse development in Manchester.
Village will have 10 branches going forward, all in the Richmond region and Foster said it may look to add locations over time.
“For Village this consolidation gives us a branch network that serves our current needs well and positions us to grow and add locations that make sense in the coming years,” Foster said.
The branch that’s being shuttered is a 2,900-square-foot standalone building near the entrance to the Pebble Creek subdivision. Village took ownership of the property when it acquired River City Bank in 2008.
That property will be put up for sale with CBRE | Richmond broker Trib Sutton. It’s currently assessed at $1.16 million, according to county records.
“It is a quality piece of real estate,” Foster said.
The bank also recently shuffled its upper ranks. It restructured the responsibilities of some of its top executives, resulting in the elimination of COO and chief risk officer Raymond Sanders. He’ll leave the company Sept. 30.
Chief credit officer Jay Hendrick and executive vice president Joy Kline will assume Sanders’ responsibilities.