Xenith’s headquarters is in the James Center on E. Cary Street. Photo by Michael Schwartz.
Richmond-based Xenith Bank has struck an all stock deal to combine with Bank of Hampton Roads and its parent company, creating a $2.9 billion institution with dozens of branches in several markets of Virginia, North Carolina and Maryland.
The value of the deal, announced after the close of the stock market Wednesday, is pegged at $107 million, based on Xenith shareholders receiving 4.4 shares of HRB common stock for each share of Xenith common stock. HRB shareholders will own 74 percent of the combined company, with Xenith shareholders holding the rest.
The Xenith brand will be used going forward for both the bank and the holding company and the combined companies will be headquartered in Richmond.
Gaylon Layfield.
HRB Chairman and interim CEO Charles Johnston intends to retire upon closing.
This marks Xenith’s first deal since it acquired the former Colonial Virginia Bank in Gloucester in 2014. And it’s the latest in a steady stream of local banking deals, most recently including First Capital Bank being purchased by Park Sterling Bank out of Charlotte at the turn of the New Year.
Another large Virginia banking deal in the works is the combination of Suffolk-based TowneBank and Monarch Bank out of Chesapeake. That deal, too, will have some ripples in the Richmond market.
HRB already has a presence in the Richmond market with three branches under its Gateway Bank brand. The company also operates Shore Bank on the Eastern Shore.
The deal is expected to close in the third quarter. It has already been approved by the boards of both companies and is still subject to shareholder and regulatory approval.
Stay tuned to BizSense on Friday for more on this deal.
Xenith’s headquarters is in the James Center on E. Cary Street. Photo by Michael Schwartz.
Richmond-based Xenith Bank has struck an all stock deal to combine with Bank of Hampton Roads and its parent company, creating a $2.9 billion institution with dozens of branches in several markets of Virginia, North Carolina and Maryland.
The value of the deal, announced after the close of the stock market Wednesday, is pegged at $107 million, based on Xenith shareholders receiving 4.4 shares of HRB common stock for each share of Xenith common stock. HRB shareholders will own 74 percent of the combined company, with Xenith shareholders holding the rest.
The Xenith brand will be used going forward for both the bank and the holding company and the combined companies will be headquartered in Richmond.
Gaylon Layfield.
HRB Chairman and interim CEO Charles Johnston intends to retire upon closing.
This marks Xenith’s first deal since it acquired the former Colonial Virginia Bank in Gloucester in 2014. And it’s the latest in a steady stream of local banking deals, most recently including First Capital Bank being purchased by Park Sterling Bank out of Charlotte at the turn of the New Year.
Another large Virginia banking deal in the works is the combination of Suffolk-based TowneBank and Monarch Bank out of Chesapeake. That deal, too, will have some ripples in the Richmond market.
HRB already has a presence in the Richmond market with three branches under its Gateway Bank brand. The company also operates Shore Bank on the Eastern Shore.
The deal is expected to close in the third quarter. It has already been approved by the boards of both companies and is still subject to shareholder and regulatory approval.
Stay tuned to BizSense on Friday for more on this deal.