First Citizens Bank is planning to beef up its presence in Virginia by acquiring the corporate parent of Bank of Virginia, which has six branches in the greater Richmond area, for about $35 million.
Raleigh-based First Citizens announced before the markets opened Friday that it had agreed to buy Cordia Bancorp of Midlothian, Va. for $5.15 per share in cash, a 33 percent premium over Cordia’s prior closing price.
First Citizens currently has 43 branches in Virginia.
Bank of Virginia had $348 million in assets and $290 million in deposits as of March 31. Last year it posted net income of $590,000, compared to a net loss of $412,000 in 2014.
The deal is expected to close no later than the fourth quarter of this year.
First Citizens shares were trading at $252.81, up $3.21, Friday morning. Cordia shares were trading at $5.03, up $1.17.
Last week First Citizens Bank expanded into Pennsylvania by acquiring First CornerStone Bank, a six-branch community bank based in King of Prussia, Pa., after it was shut down by regulators.
First Citizens has more than 550 branches in 20 states.