FIG Partners Served As Financial Advisor To Bay Banks of Virginia In Merger With Virginia BanCorp

FIG Has Now Advised On 28 Whole Bank Transactions Nationwide
Totaling Over $1.7 Billion Since 2015

ATLANTA, Nov. 3, 2016 — Bay Banks of Virginia, Inc. (OTCQB: BAYK) and Virginia BanCorp Inc. today signed a definitive merger agreement. 

Under the terms of the agreement, Bay Banks of Virginia, Inc. (Bay Banks) will acquire Virginia BanCorp, Inc. (Virginia BanCorp). Virginia BanCorp shareholders will receive a fixed exchange ratio of 1.178 shares of Bay Banks’ common stock for each share of Virginia BanCorp common stock. Bay Banks’ shareholders will own 51% of the combined company, and Virginia BanCorp shareholders will own 49%.

FIG Served As Financial Advisor To Bay Banks of VirginiaThe combined company would have approximately $794 million in total assets, $633 million in total deposits, and $623 million in loans based on reported amounts as of September 30, 2016. The transaction is expected to close in the second quarter of 2017. 

FIG Partners served as financial advisor to Bay Banks of Virginia, Inc. The lead banker in this transaction was FIG Principal John Schramm

Randal R. Greene, Bay Banks President and Chief Executive Officer, said, “We are excited about our merger with Virginia BanCorp. The combined company is expected to become the fifth-largest community bank headquartered in Richmond, with deposits in the Richmond MSA totaling approximately $298 million. Our combined presence, coupled with our shared commitment to providing premier service, uniquely positions our franchise to grow as the community bank of choice in the Richmond market. We believe that the merger will also provide significant financial benefits for our shareholders.”

The holding company will continue to be called Bay Banks of Virginia, Inc. The board of directors of the combined company will include five members from each of the current boards of directors of Bay Banks and Virginia BanCorp. Virginia BanCorp President and Chief Executive Officer C. Frank Scott, III will serve as the Chairman of the board of directors of the holding company. Bay Banks President and Chief Executive Officer Randal R. Greene will serve as Vice Chairman of the board of directors and as President and Chief Executive Officer of the combined company.

The subsidiary banks of Bank of Lancaster and Virginia Commonwealth Bank will combine and will be called Virginia Commonwealth Bank after the closing. Bank of Lancaster Chairman Richard A. Farmar III will serve as Chairman of the board of directors of the combined bank. Mr. Greene will serve as Vice Chairman of the board of directors and as its Chief Executive Officer, and Mr. Scott will serve as its President.

More information about the merger agreement is available here

To learn more about FIG Partners, visit www.figpartners.com.

FIG Partners