Cordia Bancorp Completes Purchase of Majority Interest in Bank of Virginia
14 December 2010 - 1:32AM
Bank of Virginia (Nasdaq:BOVA) announced today that Cordia Bancorp
Inc. completed its acquisition of a majority interest in Bank of
Virginia on Friday, December 10, 2010. Cordia purchased 6,776,316
shares at a price of $1.52 per share for a total investment of
$10,300,000. The investment results in Cordia owning
approximately 59.8% of the outstanding shares of Bank of
Virginia. Under the terms of Cordia's agreement with Bank of
Virginia, Cordia may invest up to an additional $9,700,000 at the
same price per share by September 30, 2011.
The Bank of Virginia board of directors elected Jack C. Zoeller,
age 61, as Chief Executive Officer. Mr. Zoeller, Co-Founder
and CEO of Cordia Bancorp, has 30 years' experience
in start-up and turn-around companies in the banking,
financial services and risk management industries. During the last
major U.S. banking crisis, he served as turnaround CEO of ComFed
Bancorp, a troubled $1.8 billion asset-size bank holding company in
Massachusetts. In that capacity, he was reported to have been the
first bank president asked by the RTC to remain in place during a
bank's conservatorship. From 2006 to 2008 he served on the
board and executive committee of TransCommunity Financial Corp., a
Virginia bank holding company that merged with Bank of Essex
Financial Corp. and Community Bankers Acquisition Corp. In early
2009, he resigned from the merged company, Community Bankers Trust
Corp., to co-found Cordia Bancorp and pursue an alternative
mid-Atlantic banking strategy.
Mr. Zoeller began his career at E.F. Hutton in New York, where
he built the first financial guarantee insurance business on Wall
Street. He later founded and served as CEO of Capital Risk
Management and AtlantiCare Risk Management and served three years
as CEO of New England's largest volume residential mortgage lender.
He also served as founder and CEO of North American Health &
Life Insurance Co. Ltd. In 2010 he was appointed by the Secretary
of Defense to the Defense Business Board at the Pentagon. Mr.
Zoeller is a graduate of the U.S. Military Academy at West Point
and holds advanced degrees from the Harvard Kennedy School and
Oxford University, where he studied as a Rhodes Scholar. As a
U.S. Army Ranger, he served as an infantry company commander in the
82nd Airborne Division.
Five other principals of Cordia were elected to the Bank of
Virginia's board of directors, including Cordia's founding
Chairman, Peter W. Grieve; Bruce B. Nolte, former CEO of
TransCommunity Financial Corp. and TransCommunity Bank of Glen
Allen, VA; Raymond H. Smith, Jr., CEO of Smith Brown & Groover
Securities of Macon, GA; Christopher G. Miller, former director and
audit committee chairman of TransCommunity Financial Corp.; and
John P. Wright, former bank analyst at Keefe, Bruyette and
Woods. Mr. Zoeller was elected Chairman of the Bank
Board.
The Board also elected Henry ("Hank") Richeson, founding CEO of
Bank of Virginia, to be Vice Chairman of the Bank Board.
As previously disclosed, the purchase price for Cordia's
investment was subject to adjustment based on the book value of
Bank of Virginia. As of November 30, 2010, Bank of Virginia
identified a need for a $2.4 million increase in its provision for
loan losses. The effect was a reduction in the Bank's book
value and a proportionate reduction in the price per share of the
Cordia investment.
Jack Zoeller stated: "As a result of the additional capital
invested in Bank of Virginia, we have a unique opportunity to
resume the bank's growth into one of the top community bank
franchises in Central Virginia. It is a privilege for me and my
colleagues to join the Bank's highly experienced board of directors
and to have an opportunity to work with Vice Chairman Hank
Richeson, President Frank Bell and the Bank's truly talented staff.
"
Hank Richeson added: "When we started Bank of Virginia back in
2004, our goal was to forge something unique in Virginia community
banking. We feel quite comfortable that Jack Zoeller, Bruce
Nolte and the other founders of Cordia share this
vision. Working together, we hope to become a real force in
the future of community banking in the Old Dominion."
About Bank of Virginia
Bank of Virginia operates five full-service branch offices in
Chesterfield County and Henrico County in Virginia. Bank of
Virginia common stock is traded on the NASDAQ stock market under
the quotation symbol "BOVA". Additional investor relation
information can be found on the internet at www.bankofva.com.
DISCLAIMER
This news release may include forward-looking statements. These
forward-looking statements are based on current expectations that
involve risks, uncertainties and assumptions. Should one or more of
these risks or uncertainties materialize or should underlying
assumptions prove incorrect, actual results may differ materially.
These risks include: changes in business or other market
conditions; the timely development, production and acceptance of
new products and services; the challenge of managing
asset/liability levels; the management of credit risk and interest
rate risk; the difficulty of keeping expense growth at modest
levels while increasing revenues; and other risks detailed from
time to time in the Bank's periodic filings with the Board of
Governors of the Federal Reserve System, including the Bank's
annual report on Form 10-K as filed with the Board of Governors of
the Federal Reserve. Pursuant to the Private Securities Litigation
Reform Act of 1995, the Bank does not undertake to update
forward-looking statements contained within this news release.
CONTACT: Bank of Virginia
Jack Zoeller, Chief Executive Officer
804-763-1333
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