Community Bank Investors of America, better known as CBIA, is a private equity fund founded in 2007 by two locals to identify struggling, undervalued community banks, take an equity position in them and, in some cases, take over leadership of the bank. This week RBS chats with one of the founders about the challenges of that sort of work these days.
Midlothian-based Bank of Virginia has found a partner that will strengthen its balance sheet and help meet conditions set forth by regulators in January.
A recent addition to the Richmond banking scene, Buffalo-based M&T Bank, doubled its first quarter profit from the previous year. The bank said it earned $151 million during the first quarter, up 136 percent from $64 million. Last year the bank acquired Baltimore-based Provident Bank, which had several branches in the Richmond area. According to… Read more »
Pay for local bank executives rose in 2009 but was still below 2007 levels, according to SEC filings.
SunTrust, a regional bank with major offices in downtown Richmond, might be an acquisition target of an international bank, according to a Credit Suisse investor report. SunTrust is the nation’s seventh largest bank by assets and deposits. From an article in the Washington Business Journal: The analyst said Winston Salem, N.C.-based BB&T Corp. is the… Read more »
“We have a very busy branch on Glenside Drive; we are trying to serve members in that area by relieving that business there. We have looked for a location for a long time,” said Glenn Birch, a spokesman for the credit union.
Local bankers know they’re not the most popular guys around town these days. But the banking model doesn’t work so well when real estate prices are fluctuating so wildly and major industries are falling by the wayside. There were two banking panels this week both centered around the topic of why banks seem tighter lending than this time two years ago. Both had a similar refrain.
Now that federal regulators have blessed the deal, two local banks can move ahead with their merger. Union First Market Bank, as the new company is called, will still have outlets in supermarkets.
According to the agreement, Bank of Virginia must submit to regulators a plan that improves its loan policies, credit risk management and board oversight, among other requirements. The bank must also complete a management review and develop a strategic plan to improve the bank’s earnings and budget for 2010.
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.