LURAY, Va., Oct. 20, 2016 /PRNewswire/ -- Blue Ridge Bankshares, Inc. (OTC Pink: BRBS) ("Blue Ridge"), parent company of Blue Ridge Bank, announced today the completion of its merger with River Bancorp, Inc. ("River") at the close of business on October 20, 2016. The merger follows the March 2016 announcement of the signing of a definitive agreement between the two companies. Pursuant to the terms of the agreement, the exchange ratio for River shareholders receiving Blue Ridge common stock is 0.8143 shares. River shareholders receiving cash consideration for their shares will receive $16.57 per share. The definitive agreement contained allocation and proration procedures designed to ensure that 70% of River's outstanding shares are converted into Blue Ridge common stock and 30% of River's outstanding shares are converted into cash.
"We are incredibly excited and pleased to welcome the River team to Blue Ridge," said Brian K. Plum, President and Chief Executive Officer of Blue Ridge. "We have a long-standing working relationship with River, and we carry tremendous respect for its commitment to its communities, employees, and shareholders. We are eager as we look to the future and the potential we believe it holds for our companies working together to strengthen and broaden services to current and new customers. We believe this combination will afford us more opportunities to continue growing and creating shareholder value by delivering on the competitive advantage that true community banking provides."
In conjunction with the consummation of the merger three River directors join the Blue Ridge Board of Directors; Hunter H. Bost, Kenneth E. Flynt, and Ronald D. Haley. Plum noted, "Each of these directors brings extensive industry and market knowledge that should contribute significantly to the success of the combined company. Blue Ridge is fortunate that these individuals are willing to serve in this capacity as the company looks to the future."
Haley, who is President and Chief Executive Officer of River Community Bank, N.A., added, "We are looking forward to the combination of our two banks. The communities and employees of both organizations will benefit from the union."
Blue Ridge will continue to operate Blue Ridge Bank and River Community Bank, N.A. separately until their core systems are merged in early December 2016, at which time the combined bank will operate as Blue Ridge Bank, N.A.
About Blue Ridge Bankshares, Inc.
Blue Ridge Bankshares, Inc., headquartered in Luray, Virginia, is the holding company for Blue Ridge Bank and River Community Bank, N.A. The combined company has commercial banking and mortgage banking operations in Virginia and North Carolina markets. Visit www.mybrb.com for more information.
This press release may contain "forward-looking statements" as defined by federal securities laws, which may involve significant risks and uncertainties. These statements address issues that involve risks, uncertainties, estimates and assumptions made by management, and actual results could differ materially from the results contemplated by these forward-looking statements. The following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance:
changes in asset quality and credit risk as a result of the merger and otherwise; changes in customer borrowing, repayment, investment and deposit behaviors and practices; changes in interest rates, capital markets, and local economic and national economic conditions; the timing and success of new business initiatives; competitive conditions; regulatory requirements; accounting standards or interpretations of existing standards; technology; information security; and mergers and acquisitions, including integration
risk in connection with Blue Ridge's merger with River such as potential deposit attrition, higher than expected costs, customer loss and business disruption, including, without limitation, potential difficulties in maintaining relationships with key personnel, and other integration related-matters. Readers should consider these risks and uncertainties in evaluating forward-looking statements and should not place undue reliance on such statements. Blue Ridge undertakes no obligation to update these statements following the date of this news release.
Brian K. Plum
President and Chief Executive Officer
SOURCE Blue Ridge Bankshares, Inc.