Central Virginia Bankshares (fka CVBK)

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BANK BUY Central Virginia Bank to be acquired by C&F Financial

West Point-based corporation makes deal on heels of merger of Union First and StellarOne

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Posted: Wednesday, June 12, 2013 12:00 am | Updated: 11:58 pm, Wed Jun 12, 2013.

BY CAROL HAZARD Richmond Times-Dispatch

The Richmond area is seeing its second bank merger this week.

C&F Financial Corp., the holding company for C&F Bank (legally known as Citizens and Farmers Bank), will acquire Central Virginia Bankshares Inc., which owns Central Virginia Bank.
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The all-cash transaction is valued at 32 cents per common share, or $855,000 in the aggregate.

That deal comes as Richmond-based Union First Market Bankshares Corp. said Monday that it plans to merge with Charlottesville-based StellarOne Corp. in an all-stock deal valued at $445.1 million.

Unlike the Union First Market and Stel-larOne merger of two strong entities, C&F’s deal with Central Virginia Bank is a merger of a strong entity acquiring a weak one to increase market share, analysts say.

West Point-based C&F achieved record earnings in 2012 and the first quarter of 2013 and maintains a strong history of dividends paid to its shareholders. It was named as one of the “Top Banks of the Decade” by Forbes.com in April 2012.

Powhatan County-based Central Virginia Bank has been under written agreement with state and federal regulators to improve its capital levels since June 2010.

It announced in its first-quarter earnings report last month that it was open to all strategic alternatives as it struggled to deal with payments related to its participation in the government’s Troubled Asset Relief Program.

As part of the merger agreement, Central Virginia Bank’s $13.24 million in TARP money and unpaid dividends as of March 31 will be repaid to the U.S. Treasury by C&F at a discounted amount of $3.35 million.