Blue Ridge Bankshares in Luray, Va., has agreed to buy River Bancorp in Martinsville, Va.
The $269 million-asset Blue Ridge said in a press release Thursday that it will pay $12.4 million in cash and stock for the $115 million-asset River. The transaction is expected to close in the third quarter.
“This transaction affords us the opportunity to partner with an excellent financial institution with similar values and the same rigorous commitment to serving our communities,” Brian Plum, Blue Ridge’s president and chief executive, said in the release. “Our partnership with River furthers our strategy of organic growth and selective expansion while seeking acquisitions with significant earnings accretion and reasonable earn back periods.”
Blue Ridge said it expects the transaction to be more than 30% accretive to earnings per share. It should take less than two years to earn back any dilution to Blue Ridge’s tangible book value.
Ronald Haley, River’s president and CEO, will join Blue Ridge’s board and will become president and chief operating officer of its bank.
Blue Ridge was advised by Sandler O'Neill and LeClairRyan. River was advised by Banks Street Partners, Woods Rogers and Bryan Cave.