Blue Ridge Bankshares, Bay Banks of Virginia to merge
Blue Ridge Bankshares in Charlottesville, Va., has agreed to buy Bay Banks of Virginia in Richmond.
The $1.6 billion-asset Blue Ridge said in a press release Thursday that it will pay $100.4 million in stock for the $1.2 billion-asset Bay Banks. The deal is expected to close in the first quarter.
While Blue Ridge is the legal acquirer and will retain its name, Bay Banks’ shareholders will own 54% of the company when the deal closes. The corporate headquarters will be Charlottesville; the bank will operate out of Richmond.
The company will have 32 branches, $1.9 billion in loans and $2.2 billion in deposits.
"This combination creates additional resources to invest in our communities and the technologies necessary to maintain and improve upon our core commitment to providing responsive, client-centric financial services," Brian Plum, who will remain CEO of Blue Ridge, said in the release.
"Bay Banks' combination of longstanding dedicated service to its legacy communities with significant success in key Virginia [markets] will diversify the combined company's revenue and market demographics,” Plum added.
Randal Greene, Bay Banks’ CEO, will become Blue Ridge’s chief operating officer and CEO of its bank. Seven of the company’s 13 directors will come from Blue Ridge.
The deal is expected to be accretive to what each company would have earned individually in 2021. Blue Ridge plans to cut $8.2 million in annual operating expenses, or roughly 10.5% of the noninterest expenses forecast for both companies in 2021.
Blue Ridge expects to incur $17.3 million in merger-related expenses.
Blue Ridge was advised by Raymond James and Troutman Pepper Hamilton Sanders. Bay Banks was advised by Piper Sandler Cos. and Williams Mullen. Strategic Risk Associates handled credit analysis and testing.