Blue Ridge Bank and FVCbank provided an update on their previously announced business combination. Since the merger was announced in July, the two companies have been working on regulatory applications, registration and shareholder meeting materials and integration planning needed to create a $5 billion franchise across Virginia.
During this time, Blue Ridge learned that the Office of the Comptroller of the Currency identified certain regulatory concerns with Blue Ridge Bank that could impact the application process and timing of the merger. Blue Ridge Bank has already commenced an initiative intended to fully address the OCC’s concerns.
Blue Ridge and FVCbank intend to file the regulatory applications for approval of the merger as soon as practicable and a registration statement on Form S-4 with the Securities and Exchange Commission at the same time.
“While we have additional work to do, we believe the OCC’s concerns are ones that we can solve in a timely fashion and do not materially impact the strategic rationale of the merger,” Brian K. Plum, president and CEO of Blue Ridge Bank, said. “We are considering various alternatives to proceed with regulatory applications and shareholder meetings and to close the merger as expediently as possible, and currently anticipate that it will close in the second or third quarter of 2022.”
“We strongly believe that this transformational partnership remains strategically and financially attractive,” David W. Pijor, chairman and CEO of FVCbank, said. “For all of the reasons that we’ve discussed previously, this is a highly compelling transaction for both companies, and we are committed to seeing it through to completion. We also know how committed Blue Ridge Bank’s management team is to resolving any concerns raised by its regulators.”
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