Blue Ridge and River Community banks plan to merge
- March 31, 2016
Luray-based Blue Ridge Bankshares Inc. and Martinsville-based River Bancorp Inc. plan to merger in a deal valued at $12.4 million.
Blue Ridge, the parent company of Blue Ridge Bank, would acquire River, the parent company of River Community Bank, with an offer that includes stock and cash.
River operates four branches in and around Martinsville. It will add about $115 million in assets, $100 million in loans, and $98 million in deposits to Blue Ridge.
When the deal is complete, Blue Ridge will have about $384 million in assets, $296 million in loans (plus an additional $21 million in mortgage loans held for sale), and $294 million in deposits, based on financial records reported on Dec. 31.
Under the terms of the merger agreement, River shareholders will have the right to receive either $16.57 in cash or 0.9821 shares of Blue Ridge common stock for each share of River common stock they hold. Terms could be adjusted depending on the price of Blue Ridge stock near the closing date, which is expected to take place during the third quarter of this year.
The deal has been approved by the boards of directors of both companies. The transaction still is subject to customary closing conditions, including regulatory approvals, and approval from the shareholders of both banking companies.
Three River directors will be appointed to the Blue Ridge Board. After the merger, Brian K. Plum will continue to serve as president and CEO of Blue Ridge Bankshares. Ronald D. Haley, president and CEO of River, will be president and chief operating officer of the combined bank and a director on the Blue Ridge Board.