Bank of McKenney in Virginia has agreed to buy CCB Bancshares in South Hill, Va.
The $231 million-asset Bank of McKenney said in a press release Wednesday that it will pay $19 million in stock for the $216 million-asset CCB. The deal, which would be Bank of McKenney's first bank acquisition, is expected to close in the fourth quarter.
The companies are working on a new name and brand for an institution that would have $447 million in assets with 13 branches in Virginia and North Carolina.
James Black, CCB’s president and CEO, is to have the same titles at Bank of McKenney. Richard Liles, Bank of McKenney’s president and CEO, would become executive chairman.
Each bank reported modest first-quarter profit: Bank of McKenney's was $372,000 and CCB's was $246,000. They want to leverage increased scale to boost growth and profitability.
The combined bank’s legal lending limit would be double the existing figure at Bank of McKenney and CCB, Liles said.
“That’s a good reason” to pursue a deal, “but the best reason is the efficiencies we’ll gain,” Liles said. “It’s tough for banks with $220 million to $250 million of assets to survive.”
Liles, 67, said he plans to serve as executive chairman for about a year after closing, mainly to ensure that the integration goes smoothly. He’d become nonexecutive chairman after that.
“I’ve got too much blood, sweat and tears invested to walk away completely,” he said.
The combined bank would have branches stretching from the Richmond, Va., area to Raleigh, N.C.
“We’ll have two extremely good markets,” Liles said.