An otherwise quiet year for local bank mergers got a small jolt this week.
C&F Bank, a $1.6 billion institution with a significant presence in metro Richmond, announced Tuesday it has struck a deal to acquire Montross, Virginia-based Peoples Community Bank, which has $194 million in total assets.
The deal, which involves a combination of cash and stock valued at around $21 million, allows West Point-based C&F to enter the counties of Westmoreland, King George, Richmond and Stafford by taking on Peoples’ five branches. That will add to C&F’s more than two dozen branches, in addition to another it has in the works in downtown Richmond.
Peoples’ CEO Bob Bailey, who has been with the bank nearly 20 years, will stay in with C&F as senior banking officer for its Northern Neck operations.
Tom Cherry, C&F’s chief executive, will continue to lead the combined banks when the deal closes, which is expected early next year. The transaction already has been approved by the boards of both banks, and is still subject to shareholder and regulatory approval.
Peoples’ shareholders will receive a combination of one-half share of C&F and $27 in cash for each share they own in parent company Peoples Bankshares.
C&F enlisted investment banking firm Keefe, Bruyette & Woods and law firm Williams Mullen to advise it on the deal. Peoples’ was advised by investment bank Sandler O’Neill & Partners and law firm Troutman Sanders.
The deal is the first marriage between local banks to be announced this year. A much larger deal – Atlantic Union Bank’s (formerly Union Bank & Trust) acquisition of Access National Bank in Northern Virginia – closed in February.
Another much larger deal that will have local ramifications is still playing out, as regional giants SunTrust and BB&T plan to combine later this year.