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Cordia Bancorp Wins Shareholder Nod for USD 35m Buyout by North Carolina´s First Citizens Bank
Friday 12 August 2016

12 August 2016 - Shareholders of Virginia, US-based bank holding company Cordia Bancorp Inc have approved the company's agreed deal to be acquired by North Carolina, US-based bank holding company First-Citizens Bank and Trust Co. for USD 35m, the company said.

The merger has also been approved by the Federal Deposit Insurance Corp. and the North Carolina Commissioner of Banks.

Cordia Bancorp provides retail and commercial banking products and services through its subsidiary, Bank of Virginia.

The definitive agreement, which was announced in May, provides for the acquisition of Midlothian, Virginia-based Cordia Bancorp by First Citizens Bank, which is headquartered in Raleigh, North Carolina.

This agreement has been approved by the boards of directors of both companies. The transaction is expected to close no later than 4Q16, subject to the receipt of regulatory approvals and the approval of Cordia Bancorp shareholders.

Under the terms of the agreement, cash consideration of USD 5.15 will be paid to the shareholders of Cordia Bancorp for each of their shares of Cordia Bancorp's common stock.

The deal is worth around USD 35m.

Cordia Bancorp operates six branches in the greater Richmond market through Bank of Virginia, with USD 348m in consolidated assets, USD 290m in deposits and USD 225m in loans as of 31 March 2016.

The Bank of Virginia branches are located in Midlothian, Richmond (two branches), Chester, Chesterfield and Colonial Heights, Va.

Upon completion of the merger, Bank of Virginia branch offices will open as First Citizens Bank branches.

Founded in 1898 and headquartered in Raleigh, N.C., First Citizens Bank serves customers at more than 550 branches in 20 states. First Citizens Bank is a wholly owned subsidiary of First Citizens BancShares Inc. (NASDAQ: FCNCA), which has USD 32bn in assets.

Cordia Bancorp is the bank holding company for Bank of Virginia. Bank of Virginia provides retail banking services to individuals and commercial customers through six full-service banking locations in the greater Richmond market, including Chesterfield and Henrico Counties and Colonial Heights, Va.

With regional headquarters in Roanoke, Va., First Citizens currently operates 43 branches in Virginia, including one in Midlothian and one at Short Pump in Richmond.

Sandler O'Neill + Partners L.P. acted as financial advisor and rendered a fairness opinion to the board of directors of Cordia Bancorp in connection with this transaction. Ward and Smith, P.A., represented First Citizens in the transaction; Kilpatrick, Townsend and Stockton LLP represented Cordia Bancorp.
Details
Date Published: 12/08/2016
Target: Cordia Bancorp Inc
Country: USA
Deal Size: 35m (USD)
Sector: Banking/Financial Services
Type: Corporate acquisition
Financing: Cash
Status: Agreed
Vendor:
Buyer: First-Citizens Bank and Trust Co
Buyer Advisor: Ward and Smith, P.A.,
Comment:


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