WEST POINT – One of the Town of West Point's most well-known financial institutions is one step closer to merging with Central Virginia Bank.
C&F Financial Corporation - the holding company for Citizens and Farmers Bank (C&F Bank) - got the green light from shareholders on Tuesday, September 24, to move forward with the acquisition of the Powhatan-based bank.
"We plan on buying out the holding company in the first part of October," said C&F Financial Corporation Executive Vice President and Chief Financial Officer, Tom Cherry.
"The banks have not been combined yet and won't be until a later date."
According to Cherry, the change won't take place until closer to the beginning of 2014.
In June, C&F signed a merger agreement with Central Virginia Bankshares (CVB) - the holding company for Central Virginia Bank - for $855,000 in cash, or $0.32 per share.
C&F has also agreed to pay $3.35 million to redeem the preferred and common stock CVB has not bought back from the U.S. Treasury.
After the deal is closed in October, all seven CVB Banks, located in Powhatan, Cumberland, Chesterfield, and Henrico counties, will eventually become C&F Banks, establishing a total of 25 C&F branches throughout Virginia.
C&F Bank, founded in 1927 in the Town of West Point, is one of the oldest independent community banking organizations headquartered in the Commonwealth.
"We are excited for the opportunity to unite these two organizations, which share a common vision of superior customer service," said Larry G. Dillon, chairman, president and CEO of C&F.
With the acquisition, C&F Financial Corporation's assets will be approximately $1.35 billion, with deposits totaling approximately $1 billion. This will rank the company sixth in terms of deposit market share among all banks in the Richmond Metropolitan Statistical Area (MSA).
Although the developers are feeling the strain, the local winery, golf course, and homeowners within the vineyards will remain unaffected, according to Doug Anderson, of Boddie-Noell Enterprises, of North Carolin. The company, which owns New Kent Farms, LLC, and controls most of the residential area, is in compliance and is also unaffected.
Martin can be reached by phone at 804-885-0040.