Blue Ridge Bankshares in Charlottesville, Va., has agreed to buy FVCBankcorp in Fairfax, Va.
The $3.2 billion-asset Blue Ridge said in a press release Wednesday that it will pay $306.6 million in stock for the $1.9 billion-asset parent of FVCbank. The deal is expected to close by the first quarter.
Blue Ridge shareholders will own 52.5% of the company when the deal closes. The company will be based in Fairfax.
“This partnership creates a powerful and innovative financial services provider better able to serve its clients and communities of today and tomorrow,” Brian Plum, Blue Ridge’s president and CEO, said in the release.
“The team at FVCB has built and maintains a high-quality banking franchise, and there is no better team with which to unite to capitalize on the opportunities presented by an evolving industry,” Plum added.
Blue Ridge said the deal should be at least 16% accretive to its 2022 and 2023 earnings per share. It should take less than two years for the company to earn back a projected 5.7% dilution to its tangible book value.
David Pijor, FVCB’s chairman and CEO, will become executive chairman. Patricia Ferrick, FVCB’s president, will become president of the combined company and president and CEO of the bank.
Plum will remain CEO.
The 16-member board will have an even split of directors from Blue Ridge and FVCB. Pijor and Ferrick will join the combined board.
Blue Ridge plans to cut about 11% of the combined company’s annual noninterest expenses, excluding mortgage-related expenses. The company expects to incur $25 million of merger-related expenses.
Raymond James and Williams Mullen advised Blue Ridge. Piper Sandler and Troutman Pepper advised FVCB.