July 03--Richmond-based Xenith Bankshares Inc. says it completed the acquisition of Gloucester-based Colonial Virginia Bank on Tuesday.
Xenith Bank will continue to operate CVB's two banking branches in Gloucester and a loan production office in York County although it's undetermined how long the Colonial Virginia Bank name would be used, according to a news release.
CVB shareholders received 2.65 shares of Xenith's common stock for each share of CVB common stock.
That means 1.6 million shares of Xenith Bankshares common stock will be issued to the former shareholders of Colonial in exchange for their 610,175 shares, according to the bank's filing with the Securities and Exchange Commission. As of Wednesday afternoon, the CVB stock price was listed at $16.37 on the Over the Counter Bulletin Board.
"We are pleased to grow and expand our competitive position in the Greater Hampton Roads, Virginia region, which is one of our target markets," Xenith Bankshares President and CEO T. Gaylon Layfield III said in a news release.
When the deal was announced in March, CVB President and CEO Robert L. Bailey said that community banks are partnering to improve efficiencies amid increased regulation and competition among banks.
The combined bank would have a total of $803 million in total assets, $632 million in loans net allowances for loan and lease losses, $674 million in deposits and $100 million in total equity capital.
Xenith is a commercial bank targeting small and middle market businesses, local real estate developers and investors and banking clients. Xenith has six branches in Tysons Corner, Richmond and Suffolk.
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