EVB is close to finalizing a deal to acquire a $100 million bank. Photo by Michael Schwartz.
A local bank has cleared two big hurdles on its way to the acquisition of a bank in Newport News.
EVB has received approval for its acquisition of the $100 million Virginia Company Bank from both of its main regulators, the Federal Reserve and the state’s Bureau of Financial Institutions.
That leaves only a vote by Virginia Company Bank’s shareholders as the last obstacle in the deal, which is valued at $9.6 million.
Virginia Company Bank’s shareholders are set to vote on the matter later this month, and EVB chief executive Joe Shearin said he expects a favorable result.
“We feel pretty confident,” Shearin said.
Shearin said the deal, which was first announced in May, is expected to close as planned in mid-November.
“Everything is right on track,” he said.
EVB said it will pay for a quarter of the purchase in cash. The remaining price will be paid in shares of EVB stock. Virginia Company Bank shareholders will have the choice of receiving $6.25 in cash or 0.92 shares of EVB stock per share of VCB.
Tappahannock-based EVB will take on VCB’s three branches in Williamsburg, Newport News and Hampton. EVB currently has 23 branches.
Virginia Company Bank CEO Mark Hanna will become president of EVB’s Peninsula region operations.
The $1 billion bank’s stance as an acquirer is fueled by a $50 million capital raise it completed last year. It also recently increased its presence on the Southside with the opening of a new lending office in Chesterfield.
The Virginia Company Bank deal would be the second acquisition by a local bank to close in 2014. Still pending is a deal for TowneBank to acquire Richmond-based Franklin Federal Savings Bank.
And more M&A action may be in the works.
Locally-based Xenith Bank recently reloaded its coffer with new $15 million line of credit and a $5.6 million private placement capital raise from two investors.
Xenith, which has been an active acquirer since its inception in 2009, said some of the funds will likely be used for more mergers and acquisitions.
EVB is close to finalizing a deal to acquire a $100 million bank. Photo by Michael Schwartz.
A local bank has cleared two big hurdles on its way to the acquisition of a bank in Newport News.
EVB has received approval for its acquisition of the $100 million Virginia Company Bank from both of its main regulators, the Federal Reserve and the state’s Bureau of Financial Institutions.
That leaves only a vote by Virginia Company Bank’s shareholders as the last obstacle in the deal, which is valued at $9.6 million.
Virginia Company Bank’s shareholders are set to vote on the matter later this month, and EVB chief executive Joe Shearin said he expects a favorable result.
“We feel pretty confident,” Shearin said.
Shearin said the deal, which was first announced in May, is expected to close as planned in mid-November.
“Everything is right on track,” he said.
EVB said it will pay for a quarter of the purchase in cash. The remaining price will be paid in shares of EVB stock. Virginia Company Bank shareholders will have the choice of receiving $6.25 in cash or 0.92 shares of EVB stock per share of VCB.
Tappahannock-based EVB will take on VCB’s three branches in Williamsburg, Newport News and Hampton. EVB currently has 23 branches.
Virginia Company Bank CEO Mark Hanna will become president of EVB’s Peninsula region operations.
The $1 billion bank’s stance as an acquirer is fueled by a $50 million capital raise it completed last year. It also recently increased its presence on the Southside with the opening of a new lending office in Chesterfield.
The Virginia Company Bank deal would be the second acquisition by a local bank to close in 2014. Still pending is a deal for TowneBank to acquire Richmond-based Franklin Federal Savings Bank.
And more M&A action may be in the works.
Locally-based Xenith Bank recently reloaded its coffer with new $15 million line of credit and a $5.6 million private placement capital raise from two investors.
Xenith, which has been an active acquirer since its inception in 2009, said some of the funds will likely be used for more mergers and acquisitions.