FVCBankcorp agreed to acquire Colombo Bank in a cash and stock transaction valued at approximately $33.3 million. At closing, Colombo will merge into FVCbank, FVCB’s wholly owned bank subsidiary. Both boards of directors unanimously approved the merger, with closing expected early in Q4/18, subject to regulatory and Colombo shareholder approval.
According to the terms of the agreement, Colombo shareholders will receive a number of shares determined by dividing $0.043492 by the average of the closing price per share of FVCB common stock and cash in an amount equal to $0.053157 per share. As a condition to the consummation of the merger, FVCB will raise at least $10 million in additional capital.
“We are extremely pleased about the proposed acquisition of Colombo and the transformative opportunities the combination creates for us. We currently lend in these markets and believe this merger provides substantial opportunities for growth of the combined bank,” said David W. Pijor, FVCB’s chairman and CEO. “We look forward to serving Colombo customers and to work very closely with the Colombo team to provide a seamless transition. I am very proud and eager to lead the combined entity into a new market and new opportunities.”
Sandler O’Neill + Partners acted as financial advisor to FVCB, while Buckley Sandler provided legal counsel. Silver, Freedman, Taff & Tiernan provided legal counsel to Colombo, while RP Financial provided a fairness opinion to its board of directors.
Founded in 2007, FVCbank is a Virginia-chartered community bank serving commercial businesses, nonprofit organizations and professional service entities, their owners and employees in the greater Washington, D.C., metropolitan and Northern Virginia area.
Founded in 1914 and headquartered in Rockville, MD, Colombo Bank operates five full-service locations in Bethesda, Rockville, Silver Spring and Baltimore, MD and Washington, D.C.
