CVB shareholders approve bank merger with Xenith
With the merger last week of Gloucester’s Colonial Virginia Bank with a Richmond-based bank holding company, Gloucester and Mathews residents are left without a locally owned bank in the two counties.
The majority of shareholders of Colonial Virginia Bank voted last Thursday night to accept a merger agreement with Xenith Bankshares, Inc., and its subsidiary, Xenith Bank.
Kenny Smith, executive vice president and chief financial officer of CVB, said Tuesday that more than 70 percent of outstanding shares were voted with 97 percent of those in favor. The vote was taken at CVB’s annual meeting June 12 at the Abingdon Ruritan Club, Bena.
Bob Bailey, president and chief executive officer of CVB, will become head of Xenith’s Peninsula division, Smith said. Meanwhile, Smith announced earlier he plans to retire from his position at CVB in late September.
The merger should strengthen banking products offered locally, Smith said, since Xenith has some different products than does CVB.
However, the merger comes with a human cost, as Smith said that 10 or 11 current CVB employees will lose their jobs with the merger. These will include workers in back-office positions like bookkeeping and human resources, Smith said. No staffing cuts are planned for the tellers, loan officers and others who deal directly with the public, he said.