By: Michael Campbell | Twitter: @itsthesoup
Posted: Oct. 29, 2017 | 12:00 p.m.
MCKENNEY – Months after the initial announcement, plans for an expected merger between well-known financial institution Bank of McKenney and South Hill, Virginia-based Citizens Community Bank continues to move forward after regulators green-lit the merger, bringing Touchstone Bank one step closer to reality.
In a statement earlier this month, both Bank of McKenney and CCB Bankshares announced their receipts of regulatory approvals from the State Corporation Commission and the Federal Reserve Bank of Richmond, with the combined bank expected to have “approximately $442 million in assets, $344 million in loans and $381 million in deposits based on reported financial information as of June 30, 2017.”
The transaction still needs approval from both of the bank’s shareholders, who are expected to meet sometime later this year to take action on the proposed merger. As part of the merger between the, currently McKenney-based bank and CCB, those CCB shareholders would receive 0.935 shares of Bank of McKenney stock under the proposed agreement.
“We are very pleased to receive the regulatory approvals in a timely manner which will help us maintain our goal of closing the merger during the fourth quarter”, stated Richard M. Liles, President and CEO of the Bank of McKenney in a statement last week. “We look forward to creating a high-quality bank that will continue to serve its communities with broader product offerings and increased lending capacity”.
Those words were echoed by CCB’s President and CEO James Black, who has been tapped as the president and CEO of the combined entity of Touchstone Bank once the merger is approved by shareholders.
“Employees of both banks have been working well together to ensure a smooth transition during the merger.”, Black said. “We are excited [about] the opportunity of bringing two neighboring community banks together for the benefit of all stakeholders; our customers, our shareholders, and our communities. This merger allows us to leverage our resources in ways neither bank could achieve on its own.”
As part of the merger, Bank of McKenney would move its headquarters from the town in Dinwiddie County to Prince George County into an office building just off Crossings Boulevard, a facility that would “consolidate management and operations now housed in five different locations,” according to company officials.
In terms of bank branches, there would be a total of 13 full-service offices of Touchstone Bank, a name that is also pending shareholder approval. In addition to the 13 offices, a loan production office will be located in southeastern Virginia and northern North Carolina.
In an interview earlier this month, Bank of McKenney President Liles said customers will see few changes in terms of their experiences when they go into the newly formed Touchstone Bank.
“You are still going to get the same great service you have been and the decisions will still be made locally,” Liles said. “You have the same routing number and your checks are still good and you will get the same great service. I think this shows that we have done what we needed to do to be able to survive and serve you into the next year and the year after.”
With needed regulatory approvals received, shareholders are expected to meet in November where they will decide to approve the merger itself and the name Touchstone Bank, which derives from the touchstone, which was used to test the purity of gold and silver.
“This exciting brand aligns with our shared commitment to provide all customers with exceptional, ‘high touch’ service by a trusted team of experienced, local personnel,” Liles remarked. “Together, our banks have been building a legacy for over 125 years and we’ll make history again this year as Touchstone Bank.”