Blue Ridge Bankshares in Luray, Va., has agreed to buy Virginia Community Bancshares in Louisa, Va.
The $574 million-asset Blue Ridge said in a press release last week that it will pay $42.5 million in cash and stock for the $252 million-asset Virginia Community. The deal is expected to close in the fourth quarter.
Blue Ridge said it will move its corporate headquarters to Charlottesville, Va., as part of the transaction.
Virginia Community has seven branches, $168 million in loans and $223 million in deposits.
Blue Ridge said it expects the deal to be more than 20% accretive to its core earnings per share. It should take less than four years for Blue Ridge to earn back any expected dilution to its tangible book value.
"We are incredibly excited to partner with the Virginia Community … leadership team to continue building one of the premier community banks in the region,” Brian Plum, Blue Ridge’s president and CEO, said in the release. “The complementary culture and geography will allow us to better serve our communities and clients with responsive commercial banking services while also growing our noninterest income.”
Two Virginia Community directors will join Blue Ridge's board. A. Pierce Stone, who retired as Virginia Community’s chairman, president and CEO in 2011, will also join the board.
A. Preston Moore Jr., Virginia Community’s current president and CEO, will become a regional president at Blue Ridge.
Blue Ridge was advised by Raymond James and Williams Mullen. Virginia Community was advised by Sandler O'Neill and Hunton Andrews Kurth.
