At the request of state and federal regulators, Richmond-based Virginia Business Bank must submit a survival plan that assesses management and basic metrics and prevents the bank from lending more to borrowers who are behind on payments.
It’s no fun to be a banker right now. Businesses are complaining about their loans or credit lines, and the government is getting more and more active in regulation. But an out-of-state bank thinks there is room for another in Richmond. This week, BizSense chats with Hugh Newton, the regional president of M&T Bank.
Union Bank & Trust, based in Bowling Green but in the process of buying First Market Bank, recently closed the doors of its Pouncey Tract Road location.
When Maggie L. Walker founded St. Luke Penny Savings in Richmond 106 years ago, she became the first female bank president in the country. The institution survives today as Consolidated Bank and Trust, but a proposed merger with an out-of-state holding company threatens the historical namesake.
The bank planned on raising $6 million to $9 million last fall, but, given the economic climate, that has proved more difficult than expected. The company was only able to raise a fraction of that amount.
Just when it seemed mortgage rates couldn’t get any lower, First Market Bank dipped below 4 percent on mortgages for homes sold by homebuilders they lent to. Other banks followed suit, and the program is helping sell houses.
Eight local bank branches previously operated by Maryland-based Provident Bank are under new ownership, and the new owner has a reputation for being SBA-friendly.
Pour a round of the good stuff. After three years in operation, Virginia Business Bank recorded its first quarterly profit in this year’s first quarter.
Eastern Virginia Bankshares and First Capital Bancorp announced today that they plan to merge. The all-stock deal is valued at about $27 million, with First Capital common stockholders receiving .98 shares of Eastern Virginia for every share of First Capital. Both banks are publicly traded on the NASDAQ stock exchange.
Richmond-based First Market Bank was acquired by Union Bankshares Corp. in an all-stock deal valued at about $100 million. The new holding company will move its headquarters from Bowling Green to Richmond, although that will only bring a few jobs downtown.