A financial institution that got its start in Seaford will merge and acquire a Virginia bank.
Delmar Bancorp, Salisbury, MD, the parent company of The Bank of Delmarva, Seaford, and Virginia Partners Bank, Fredericksburg entered into an agreement that calls for Partners to become a separate wholly owned subsidiary of Delmar in an all-stock transaction.
The transaction will create a partnership between Delmarva and Partners. Each bank will continue to operate as independent subsidiaries of Delmar.
The banks will maintain their existing names, executive management teams, and boards of directors.
The holding company will have about $1.2 billion of assets, $947.7 million in loans and $966.6 million in deposits, and a franchise that serves the Mid-Atlantic and Southeastern markets, extending from Philadelphia to Salisbury, and now Fredericksburg and Newport News, VA.
Bank mergers are continuing, due to regulatory cost and the need to upgrade technology to meet the needs of a growing number of customers who are doing more of their business on mobile devices and laptop computers.
Smaller banks are also seeing competition from credit unions that also consolidating and operating multiple branches.
As of September 30, Partners had about $420.1 million in assets, $325.1 million in loans and $344.5 million in deposits. Partners currently has three branches in Fredericksburg and trading under the name Maryland Partners Bank, a branch in La Plata, MD and a loan production office in Annapolis. Partners is also a 51% owner of Johnson Mortgage Company, LLC, located in Newport News, VA.
At September 30, Delmar had approximately $737.9 million in assets, $622.5 million in loans and $622 million in deposits. Delmarva currently has 11 branches located in Wicomico and Worcester Counties, MD and Sussex County, three branches in the South Jersey/Philadelphia metro market doing business under the name of Liberty Bell Bank, and a loan production office in Rehoboth Beach.
Kenneth R. Lehman currently serves on the Board of Directors of both Partners and Delmar.
The transaction is expected to close in the second quarter of 2019.
Delmar Bancorp is the holding company for The Bank of Delmarva, which commenced operations in 1896. Delmarva’s main office is in Seaford. Virginia Partners Bank, organized in 2008.
