RICHMOND, Va., April 27, 2010 (GLOBE NEWSWIRE) -- Bank of Virginia (Nasdaq:BOVA) and bank investment group Cordia Bancorp Inc. announced today that Cordia has agreed to acquire up to 5,000,000 newly issued shares of Bank of Virginia common stock at a price of $3 per share. Additionally, the board of directors of Bank of Virginia will be expanded to include six new members from Cordia.
Cordia Bancorp was formed in Virginia in 2009 by a team of former bank CEOs, directors and advisors seeking to invest in undervalued community banks in the Mid-Atlantic and Southeast.
Jack C. Zoeller, President & CEO of Cordia Bancorp, will join Bank of Virginia as Chairman and CEO upon closing. Henry E. Richeson, the founding CEO of Bank of Virginia, will serve as Vice Chairman. Frank Bell, III will continue to serve as President.Frank Bell commented, "We are pleased that Jack and his team are joining Bank of Virginia and bringing their talent and over 110 years of banking experience to the bank. While we maintain our position as 'well-capitalized' and meet all federal regulatory capital requirements, the additional capital from Cordia Bancorp will further strengthen Bank of Virginia, protect us during this difficult economic cycle, and position us for future growth and expansion in 2011 and beyond." Bell continued: "After months of discussions, our board unanimously agreed that by partnering with Cordia Bancorp, we would be able to deliver increased value to our shareholders and take our bank's strategy to the next level." Mr. Zoeller, CEO of Cordia, stated, "We formed Cordia Bancorp because we saw a large, unmet need for conservatively managed, well-capitalized, community-oriented banks in the Southeast. Bank of Virginia represents a solid banking franchise in a highly attractive geographic market in this region. Working together with our new partners, we will seek to build the bank's profitability, expand customer relationships, and pursue additional opportunities to enhance shareholder value."