HAMPTON ROADS, Va. (WAVY) — Two Virginia banks have announced a merger.
The Bank of Hampton Roads will join Richmond’s Xenith Bank. Both boards of directors announced Wednesday they reached a definitive agreement to merge.
The combined company will be known as Xenith Bankshares — with headquarters in Richmond.
Under the terms of the agreement, Xenith shareholders will receive 4.4 shares of HRB common stock for each share of Xenith common stock. Based on the closing price of the HRB’s common stock on February 10, 2016, the transaction will be valued at approximately $107.2 million. Upon closing, HRB shareholders and Xenith shareholders will own approximately 74 percent and 26 percent respectively, of the stock in the combined company.
Combined, the banks offer services reaching from Hampton Roads to the DC area.