In anticipation of its own merger, Virginia Community Bank is investing in a mortgage firm.



Fairfax, Virginia, public bank, merger with a larger regional competitor sweetened the deal by acquiring a minority stake in a local mortgage lender.

FVC Bankcorp, with $ 2 billion in assets, disclosed its investment in Atlantic Coast Mortgage in an 8-K report filed late Tuesday with the Securities and Exchange Commission. It did not say how much was paid for the 29% stake.

FVC is already providing mortgage lending on the Atlantic coast. A closer relationship will help the bank, which focuses primarily on commercial real estate lending, to expand its mortgage portfolio, Chairman and Chief Executive Officer David Pigor said in a press release on Tuesday.

In July, FVC agreed to a merger with Blue Ridge Bankshares in Charlottesville, Virginia. The $ 307 million deal is expected to close in the fourth quarter of 2021 or the first quarter of 2022.

As of June 30, FVC had mortgages totaling $ 156.6 million, 11% of its $ 1.42 billion loan portfolio.

“This partnership will enable us to provide competitive home mortgage products to our clients while increasing our financial capacity and income structure,” said Pigor, who did not respond to a request for comment at the time of publication.

Founded in 2011, Atlantic Coast has 12 subsidiaries in Virginia, Washington DC, Maryland and South Carolina.

FVC’s deal with the Atlantic Coast was struck four months after the $ 9.3 billion acquisition of Veritex Holdings in Dallas. acquired 49% of shares at Thrive Mortgage, a home lender in Georgetown, Texas.

While refinancing operations are expected to sharply decline in 2022, new home purchases will remain at record levels, approaching $ 1.8 trillion, according to the latest forecast by the Mortgage Bankers Association.


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