Eastern Virginia Bankshares Inc. of Tappahannock said Friday that it has agreed to buy First Capital Bancorp Inc. of Glen Allen, Va., for $27 million in stock.
The combined organization would have 32 branches throughout eastern and central Virginia, with little branch overlap, and $1.55 billion of assets.
It is to have its headquarters in the Richmond area. The companies have not decided on a name.
Shareholders of the $460 million-asset First Capital would receive 0.98 shares of Eastern Virginia for each First Capital share they own.
John M. Presley, First Capital's chief executive officer, is expected to become the combined company's chief financial officer.
Presley said in a press release: "In the midst of this challenging economy, we're taking the offense when others are playing defense. This positions us well for long-term growth. We intend, over time, to add significantly to the employment base within our bank's footprint."
One- to four-family mortgages make up about 42% of Eastern Virginia's loan portfolio.
The deal is expected to close by yearend.