Eastern Virginia Bankshares (EVBS) said Thursday that it has agreed to acquire Virginia Company Bank (VGNA) for $9.2 million in stock and cash.
The purchase expands the $1.1 billion-asset company's presence along Interstate 64, where the $134 million-asset Virginia Company operates three branches on the peninsula between Williamsburg and Newport News.
Eastern Virginia Bank, based in Tappahannock, operates 23 branches around Richmond and along the Virginia coast.
"This transaction brings opportunity for growth in a very desirable market and is consistent with our strategic goals of expanding the EVB franchise into the greater Richmond area and toward Newport News and Norfolk," said Joe A. Shearin, the bank's president and chief executive, in a press release.
The deal includes changes to Eastern Virginia's corporate leadership. Mark C. Hanna, Virginia Company's president and CEO, will become an executive vice president and president of the bank's peninsula region. Additionally, both Eastern Virginia and its bank unit will add one board member from Virginia Company Bank's board.
The purchase is expected to close in the fourth quarter.