Dalmar Bancorp in Salisbury, Md., has agreed to buy Virginia Partners Bank in Fredericksburg, Va.
The $738 million-asset Delmar said in a press release Thursday that it will pay $55.1 million in stock for the $420 million-asset Virginia Partners. The deal is expected to close in the second quarter.
The acquisition will give Delmar is first branches in Virginia.
Virginia Partners has four branches, $325 million in loans and $345 million in deposits. The bank also has a majority stake in Johnson Mortgage in Newport News, Va.
Delmar said it expects to cut Virginia Partners’ annual operating expenses by 25%. Virginia Partners will operate as a unit of Delmar.
Kenneth Lehman, a former banking lawyer who invests heavily in community banks, is a director at Virginia Partners and Delmar.
Virginia Partners “has a strong brand, management and board, excellent asset quality, and an attractive market area,” John Breda, Delmar’s president and CEO, said in the release. “I am very proud and eager to lead Delmar into a new market and new opportunities."
Lloyd Harrison III, Virginia Partners’ president and CEO, will become Delmar’s CEO. Breda will remain president and chief operating officer of the company.
Virginia Partners was advised by Sandler O'Neill and Troutman Sanders. Delmar was advised by FIG Partners and Buckley Sandler.
