Gateway Financial Holdings Inc. of Elizabeth City, N.C., has agreed to buy Bank of Richmond in Virginia for $55.8 million in cash and stock.
The deal, announced late Wednesday, would add six branches in Virginia to the $1.1 billion-asset Gateway's 20-branch network in Virginia and North Carolina.
The $168 million-asset Bank of Richmond, founded in 1999, "is a quality institution and is highly regarded in its local markets," Gateway chairman and chief executive D. Ben Berry said in a press release. Its "strong management team and significant market experience will provide Gateway Financial Holdings with a meaningful entrance into the Richmond market."
Bank of Richmond would be a separate Gateway division and would retain its name and president, Rex L. Smith 3rd. The seller reported third-quarter earnings of $556,000, up 38% from a year earlier.
The deal is expected to close May 31.
