Summary
First Citizens BancShares, Inc. (FCNCA) announced a significant strategic move through its bank subsidiary, First-Citizens Bank & Trust Company (FCB), entering into a definitive merger agreement to acquire Cordia Bancorp Inc. (Cordia) and its bank subsidiary, Bank of Virginia. This acquisition is expected to enhance FCNCA's market presence, particularly in the Midlothian, Virginia area. The transaction, approved by the boards of directors of both companies, is structured as an all-cash deal with Cordia shareholders receiving $5.15 per share. The acquisition is anticipated to be completed by the fourth quarter of 2016, pending necessary regulatory and shareholder approvals. Investors should monitor the closing process and any potential impacts on FCNCA's financial performance and market position.
Key Highlights
- 1First-Citizens Bank & Trust Company (FCB) to acquire Cordia Bancorp Inc. and its subsidiary Bank of Virginia.
- 2The merger agreement was finalized on May 19, 2016.
- 3The transaction is an all-cash acquisition, with Cordia shareholders to receive $5.15 per share.
- 4The Boards of Directors for both companies have approved the merger agreement.
- 5The acquisition is expected to close by the fourth quarter of 2016.
- 6Closing is contingent upon regulatory approvals and Cordia shareholder approval.