Virginia Commonwealth Financial Corporation Completes Affiliation with Caroline Savings Bank

Strategic Insights -

Virginia Commonwealth Financial Corporation (Nasdaq: VCFC) and Caroline Savings Bank have jointly announced the consummation of their affiliation. In a tax-free exchange, Caroline shareholders received 0.7959 shares of Virginia Commonwealth Financial Corporation stock for each share of Caroline Savings Bank. The affiliation brings together Caroline Savings Bank, Second Bank & Trust, and Virginia Heartland Bank under the umbrella of Virginia Commonwealth Financial Corporation.

Key Takeaways:

  • Caroline Savings Bank will operate as a subsidiary of Virginia Commonwealth Financial Corporation, expanding the latter's presence in the region.
  • The affiliation brings together three financial institutions, with Caroline Savings Bank's shareholders receiving 0.7959 shares of Virginia Commonwealth Financial Corporation stock for each share of Caroline Savings Bank.
  • W.R. Southworth, President and CEO of Caroline Savings Bank, and E. Page Butler, a current director of Caroline, will join the board of directors of Virginia Commonwealth Financial Corporation.
  • The combined entity will have approximately $418 million in combined assets and $47 million in capital.
  • The transaction results in over 2.4 million shares outstanding in the hands of over 2,800 shareholders.
  • The combined entity will operate 13 branch offices in the counties of Caroline, Culpeper, Madison, Orange, Rockingham, Spotsylvania, and the city of Fredericksburg.
  • W.R. Southworth stated that the affiliation will allow them to build upon their successes and provide enhanced service to their customers and value to the shareholders.

Statistics:

  • The combined entity will have approximately $418 million in combined assets.
  • The combined entity will have $47 million in capital.
  • Over 2.4 million shares are outstanding in the hands of over 2,800 shareholders.
  • 13 branch offices will operate under the combined entity.
  • Caroline Savings Bank's shareholders received 0.7959 shares of Virginia Commonwealth Financial Corporation stock for each share of Caroline Savings Bank.

Sources:

  • PRNewswire, Feb. 15