C&F Financial Corp. is buying a community bank with primary branches in the Northern Neck.
The West Point-based holding company for C&F Bank is acquiring Peoples Bankshares Inc. and its Peoples Community Bank subsidiary for stock and cash valued at about $21.4 million, the companies announced late Tuesday.
Under the deal, C&F Bank, short for Citizens and Farmers Bank, will enter Westmoreland, King George, Richmond and Stafford counties where Peoples Community Bank has a total of five branches.
The combined company will have $1.8 billion in assets and 30 branches across central and eastern Virginia. As of June 30, Peoples Community Bank, founded in 1913, had $194 million in total assets while C&F Bank had $1.6 billion in assets.
Thirteen of C&F Bank’s 25 branches, located from Hampton to Charlottesville, are in the Richmond region.
C&F Bank plans to open its first downtown Richmond branch in The Locks Tower apartment building that is under construction at East Byrd and South 10th streets. The company also plans a second branch in Charlottesville.
The transaction with Peoples Bankshares is expected to close in early 2020. The deal needs regulatory approvals and approval by the shareholders of Peoples Bankshares.
Following the merger, Thomas F. Cherry, C&F’s president and CEO, will remain in that role. Robert Bailey, the president and chief executive of Peoples Bankshares, will join C&F as senior banking officer for the company’s Northern Neck region.
“Both of our banks have a similar background of dedication to their customers, employees and communities. This is an exciting opportunity for two community-focused banks to come together and we are thrilled for our future together as we continue to serve our markets,” Cherry said in a statement.
Under the merger, each Peoples Bankshares shareholder will receive a combination of 0.5366 shares of C&F common stock and $27 in cash for each share they own.
Keefe, Bruyette & Woods Inc. served as financial advisor and Williams Mullen served as legal counsel to C&F Financial. Sandler O’Neill & Partners served as financial advisor and Troutman Sanders LLP served as legal counsel to Peoples Bankshares.