A pair of Virginia-based financial institutions, Atlantic Bay Mortgage and Virginia Community Bank, have announced plans to merge in an all-stock transaction.
According to a report in the Hampton Roads Business Journal
, the bank’s holding company will be terminated and the new entity will be managed as the Atlantic Bay Bank. Atlantic Bay was founded in 1996 and has over 120 locations, while Virginia Community Bank was established in 1976 and has seven locations in Central Virginia.
“This has been part of our strategic plan for a number of years and it was all about finding the right partner,” said Atlantic Bay CEO Brian Holland. “We both saw that it was a good fit. They’re in a rural market where there’s not a ton of loan demand but they have a lot of deposits. It was a nice fit. Unlike many acquisitions or mergers, we didn’t have a lot of duplication. They really don’t focus on the mortgage business and we didn’t have all the banking side of it.”