Northern Virginia community banks to merge in a $3.7 million deal
- June 13, 2012
Fairfax-based First Virginia Community Bank (FVCbank) and Arlington-based 1st Commonwealth Bank of Virginia (1st Commonwealth) plan to merge in a $3.7 million deal.
The banks have reached a definitive merger agreement under which 1st Commonwealth will be absorbed by FVCbank.
FVCbank will be surviving bank, and all of the outstanding shares of 1st Commonwealth common stock will be converted into shares of FVCbank common stock.
“We are extremely excited about this transaction, which will bring FVCbank its fourth full service banking office, our first in the ever important Arlington market, and over $50 million of quality assets and deposits, enabling us to continue our growth and expansion in an efficient manner,” David W. Pijor, chairman and CEO of FVCbank, said in a statement. “I am very pleased to be able to work with Sid Simmonds, chairman of 1st Commonwealth, who will join our board of directors, and who I believe will be a valuable source of relationships for FVCbank.”
1st Commonwealth shareholders will receive 0.22923 shares of FVCbank common stock for each 1st Commonwealth share.
The conversion will be subject to adjustment based upon certain factors, including potential operating losses of 1st Commonwealth, set forth in the agreement.
The transaction has an estimated value of $3.698 million, representing approximately 97.6 percent of the March 31 book value of 1st Commonwealth.
At the end of the third quarter, FVCbank, which was founded in 2007, had $274.5 million in assets, $232.9 million of deposits and $34.9 million in shareholder equity.
1st Commonwealth had $57.4 million in assets, $51.4 million of deposits and $3.8 million in shareholder equity.
FVCbank expects that the transaction will be accretive to its earnings within 12 months after the merger closes in the fourth quarter.
The deal has been approved by the boards of directors of both banks and is subject to the approval by 1st Commonwealth common shareholders, regulatory authorities and the satisfaction or waiver of the conditions to closing and covenants of each of the parties contained in the agreement.