CB&T OF CLEVELAND, TN AGREES TO AFFILIATE WITH FIRST VA BANKS, INC.
FALLS CHURCH, Va., June 24 /PRNewswire/ -- The directors of Cleveland Bank & Trust Company of Cleveland, Tennessee, have agreed to affiliate with First Virginia Banks, Inc., (NYSE: FVB), a $6.9 billion asset multibank holding company headquartered in Fairfax County, Virginia. The announcement was made jointly today by W. Sam McReynolds, chairman and chief executive officer of Cleveland Bank & Trust, and Robert H. Zalokar, chairman and chief executive officer of First Virginia Banks, Inc. Cleveland Bank & Trust has assets of approximately $225 million and operates six (6) banking offices in Bradley County, Tennessee. Shareholders of Cleveland Bank & Trust will receive 11-1/2 shares of First Virginia Banks, Inc. common stock for each one (1) share of Cleveland Bank & Trust stock for a total of 1,150,000 shares of First Virginia common stock. Messrs. McReynolds and Zalokar stated that consummation of the transaction is subject to the completion of a definitive agreement between First Virginia and Cleveland Bank & Trust and to approval by Cleveland Bank & Trust's shareholders. The pending affiliation is also subject to the approval of the appropriate state and federal bank regulatory authorities, and it is expected to be completed during the fourth quarter of this year. Messrs. McReynolds and Zalokar also stated that Cleveland Bank & Trust will continue to operate as a separate member bank within the First Virginia group and will retain its present management and directors under the general policies of First Virginia. Mr. McReynolds commented that the affiliation with the oldest bank holding company headquartered in Virginia would enable Cleveland Bank & Trust to take advantage of the greater resources of First Virginia in serving the needs of their customers in Bradley County. He further noted that First Virginia's return on assets and capital ratios have made it the most profitable and best capitalized major banking organization in Virginia and Tennessee for the past decade. The customers of both Cleveland Bank & Trust and First Virginia are predominantly consumers, professionals and small business owners. Both Cleveland Bank & Trust and First Virginia's member banks provide trust services. Mr. Zalokar stated that he was particularly pleased with the proposed affiliation. He stated, "Cleveland Bank & Trust is a well- managed, profitable banking organization and it appears that our objectives, loan and investment policies, customer profiles, management styles and attitude towards community involvement are quite compatible. With six offices in Bradley County, Cleveland Bank & Trust will fit quite well with our other Tennessee banks: Tri-City Bank and Trust Co., headquartered in Blountville, which serves the cities of Bristol, Johnson City and Kingsport as well as the counties of Hawkins, Sullivan and Washington; and Bank of Madisonville, headquartered in Madisonville, which serves Monroe County. First Virginia also has reached an agreement to affiliate with United Southern Bank of Morristown, headquartered in Morristown, which serves Hamblen County." First Virginia Banks, Inc. common stock is traded on the New York and Philadelphia Stock Exchanges. There are currently 20 member banks in the First Virginia group: 16 banks with 266 offices throughout Virginia; two banks with 36 offices in the Maryland suburbs of Baltimore and Washington; and two banks with 16 offices in East Tennessee. Assuming that the Cleveland Bank & Trust and United Southern Bank affiliations are completed, First Virginia will have in excess of $550 million in banking assets in Tennessee. First Virginia and its lead bank also have mortgage and insurance subsidiaries with offices in seven states, from New Jersey to North Carolina. -0- 6/24/93 /CONTACTS: Paul H. Geithner, Jr., 703-241-3605, or Richard F. Bowman, 703-241-3685, both for First Virginia Banks, Inc./ (FVB)
CO: First Virginia Banks, Inc.; Cleveland Bank & Trust Company ST: Virginia, Tennessee IN: FIN SU:
LD -- NY079 -- 5478 06/24/93 17:04 EDT
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|Date:||Jun 24, 1993|
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